Ellington Financial LLCNYSE
Wed, Dec. 7, 9:04 PM
- November 30 book value per share of $19.53 fell from $19.92 a month earlier, but the stock went ex-dividend on Nov. 29. Book value edged higher by $0.06 for the month when adding that $0.45 payout back in. It's not the worst month considering the big jump in interest rates - the credit hedges may have finally paid off.
- Going back three months to the end of August, book value was $19.73, so book fell $0.20, or about 1% over the quarter.
- EFC closed at $16.20 today, a 17% discount to Nov. 30 book value.
Mon, Nov. 7, 5:16 PM
Fri, Nov. 4, 12:16 PM
- The company has delivered ordinary income and capital losses, says Lee Cooperman, speaking to Ellington Financial (EFC -0.8%) management on the earnings call. That's not a great combination.
- Noting the large and persistent discount to book value the stock has been trading at (currently more than 20%), Cooperman wants to know at what point management would consider liquidating and returning all capital to owners.
- All options would always be considered, says management, but for now the team remains highly optimistic it can deliver strong returns.
- There's also the buyback program, but so far it's been rather modest, in part thanks to the limited number of shares that actually trade. If someone calls offering a large block sale, management says they'll be eager listeners.
- How about a tender offer, asks Cooperman, harking back to serial tender offerer Henry Singleton at Teledyne, who retired about 90% of his company's float over a period of years, and delivered huge returns for his shareholders.
- The transcript isn't yet up on Seeking Alpha's earnings center for Ellington, but the exchange will be worth a read.
Fri, Nov. 4, 7:33 AM
- The company earned just $500K or $0.02 per share in Q3 versus $5M and $0.15 in Q2 (which itself was a lame quarter). The dividend was just cut to $0.45 from $0.50.
- Book value per share of $19.83 fell from $20.31. Last night's close of $15.74 is a probably deserved 20% discount to book.
- Economic return on book value of -2.3% for the quarter, or -9% annualized.
- As has been the case for awhile, the company's credit hedges - more or less short positions in high-yield corporate bond indices - continue to get whacked. Management appears to be gradually throwing in the towel on this strategy.
- As far as buybacks, Ellington (NYSE:EFC) was buying shares early in the quarter, but stopped as the stock rallied. As the price tumbled late in the quarter, buybacks resumed. A total of about 127K shares were bought back during Q3 at an average price of $17.14 each. Almost 1M shares have been repurchased since the Aug. 2015 authorization.
- Conference call at 11 ET
- Ellington Financial Earnings Center
Thu, Nov. 3, 10:39 PM
Wed, Nov. 2, 5:35 PM
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Mon, Oct. 31, 6:04 PM
Sat, Oct. 8, 8:45 AM
- It was a no good, very bad September (and late August and early October) for the stock price of Ellington Financial (NYSE:EFC) - whose exposure to consumer loans and shorts of junk indices have proven ill-timed - but results weren't as bad as feared.
- September 30 book value per share of $19.84 is actually up $0.11 from one month earlier. Yesterday's close of $15.80 is a whopping 20% discount to Sept. 30 book.
- From a high of about $18 hit in late August, Ellington is off more than 12% since - nearly double the decline of the broader mortgage REIT index (yes, we know EFC isn't an mREIT).
Mon, Sep. 26, 8:29 AM
- At issue are consumer loans made by LoanDepot, and a one-year old securitization of them - MPLT 2015-LD1 - in which overdue payments have already breached a "trigger" which now directs cash from low-ranked tranches to protect those in higher classes.
- Cumulative losses rose to 4.97% in September vs. the 4.9% "trigger."
- This deal and at least two other struggling ones were underwritten by Jefferies (NYSE:LUK). Among LoanDepot's - which for years specialized in traditional mortgage banking until getting into Internet-based consumer loans - investors is Ellington Financial (NYSE:EFC), which contends the weakening in the sector is a buying opportunity.
- LoanDepot postponed an IPO late last year, instead turning to other sources to raise money.
Fri, Sep. 9, 7:32 AM
- August 31 book value per share of $19.73 fell from $20.52 a month earlier. This decline includes the $0.50 dividend paid, but adjusting for that still leaves a $0.29 drop in book.
- Book value per share three months ago was $20.33, so book declined $0.60 or 3% for the quarter.
- Last night's close of $17.35 is a 12% discount to book.
Thu, Aug. 4, 8:14 PM
- Q2 net income of $5M or $0.15 per share vs. a loss of $23.2M and $0.69 in Q1. Dividend is $0.50.
- Book value per share of $20.31 slips from $20.63 three months earlier. Today's close of $17.38 is a 14.4% discount to book.
- Economic return of $0.18 per share for the quarter, or 3.5% annualized.
- 330K shares repurchased during Q at an average price of $17.21 each. Given the recent slimming in the stock price's discount to book value, company has reduced the pace of repurchases.
- Talking about the weakish quarter, management notes majority of credit hedges are concentrated in short positions in high-yield credit indices. Spread tightening during the quarter took away a sizable chunk of the positive performance of the asset side of the portfolio. Management believes much of the spread tightening is technical in nature, and it's thus a prudent move to continue with the hedges, painful as it may be at the moment.
- Conference call tomorrow at 11 ET
- Previously: Ellington Financial misses by $0.23, beats on revenue (Aug. 4)
- EFC flat after hours
Thu, Aug. 4, 7:26 PM
Wed, Aug. 3, 5:35 PM
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Tue, Aug. 2, 12:12 AM
Mon, Jul. 11, 7:13 AM
- June 30 book value per share of $20.30 edged lower by $0.03 from one month earlier. It stands against BVPS of $20.63 at the end of Q1. Adding back the $0.50 dividend, the company was able to post a modest positive return for Q2 vs. a rough Q1.
- Friday's EFC close of $16.85 is a 17% discount to June 30 book value.
Wed, Jun. 8, 7:19 AM
- Book value per share of $20.33 as of May 31 fell from $20.73 one month earlier, but the company went ex-dividend on May 27. Adding back that $0.50 payout, book value for EFC gained a dime for the month, not quite enough to cover the monthly run rate of dividends.
- Last night's close of $17.24 is a 15% discount to book.