NYUGradMatt

Unusually High Institutional Ownership Stocks

Benjamin Graham, The Intelligent Investor, P.375

Check out the Neighborhood.
Excerpt: Anything over 60% (institution ownership) suggests that a stock is scarcely undiscovered and probably "overowned." When big institutions sell, they tend to move in lockstep, with disastrous results for the stock. Imagine all the Radio City Rockettes toppling off the front edge of the stage at once and you get the idea. Those website will also tell you who the largest owners of the stock are. If they are money management firms that invest in a style similar to your own, thats a good sign.

H&R Block's in Big Trouble Heading Into Tonight's Earnings

Bryan,

Case in point on horrific quality of their subprime:
Delinquency rate 2007 = 17.89%
Delinquency rate 2006 = 8%
tinyurl.com/3yylor

Page 45 of HRB 10Q.

Do you truly believe they were able to sell these for 90 cents on the dollar to Freddie and Fannie? Or to ANYONE!?

H&R Block's in Big Trouble Heading Into Tonight's Earnings

Bryan,

I don't believe them! It's that simpl! HRB has already restated earnings for last 3 yrs. They are not a transparent company. They were also the ones tauting Cerberus would buy OOMC since the beginning of 2007. That is a fact.

They were a top 5 subprime lender. Everyone including Citi, Wamu, CFC, couldnt get .90 for the $1 when selling their subprime. And OOMC's subprime is the gutter variety. with credit score 611 and under. And horrible collections tactics.

You prob have no idea so i wont ask you, rather I will ask HRB on the conference call... Where are the 26B in subprime originated since last yr? How much did you sell them for if sold and how much? If they haven't sold what do they plan to do?
tinyurl.com/2alycc

Add those quarters up and you get 27.6B in originations.

Thank you for your comments.

H&R Block's in Big Trouble Heading Into Tonight's Earnings

To follow up on my initial research, HRB canceled their earnings release the day AFTER it was due. Canceled their earnings conf call the morning of the call. Pre announced prior to official 10Q 502M loss for qtr. Postpone the conf call indefinitely until further notice. And confirmed the losses this morning with additional details of their plan to either try to raise more money because they have maxed out, or dilute shareholders and sell more shares.

This summary from CNN about wraps it up:

Excerpt:
In the SEC filing, H&R Block said it does not expect to be in compliance with requirements set by the Office of Thrift Supervision by April 30. "If we are not in a position to cure deficiencies and if operating results continue to be below our plan, a resulting failure could impair our ability to repurchase shares of our common stock, acquire businesses or pay dividends."

If the company does not meet OTS requirements, the agency could take further regulatory actions, such as a supervisory agreement, cease-and-desist orders and civil monetary penalties. The OTS could also require H&R Block to sell assets. "At this time, the financial impact, if any, of additional regulatory actions cannot be determined," the company said.
tinyurl.com/2ddpwo

H&R Block Is Speeding Towards a Brick Wall

Dear George Gutowski,

Now that Cerberus has 100% walked away from Option One, what are your current thoughts on HR Block?

Thank you