Brush Engineered Materials Inc. (BW)

All Comments on BW

  • commenter
    SeekingAlpha
    Editors
    Apr 06 05:18 AM
    My Website
    General Discussion on BW
    Is this a buy or a sell? Reply
  • commenter
    bobbyjoe
    Oct 31 05:13 PM
    Is Smallcap Short-Interest Losing Relevance? [view article]
    Sounds like you started with a hypothesis then found supporting evidence, rather than looking for alternative explanations or contradictory evidence. Reply
  • commenter
    Jeffrey Lin
    Oct 25 08:18 PM
    My Website
    Brush Engineered Materials Does not Measure Up to Precision Castparts [view article]
    As the quarter shows, I wasn't talking nonsense.

    www.reuters.com/articl...     Reply
  • commenter
    suhaas
    Oct 03 01:45 PM
    Brush Engineered Materials Does not Measure Up to Precision Castparts [view article]
    So, according to you, we should sell all tech companies, because they have to spend a lot on research. Then, you try to downplay the proprietary material "Toughmet" that is unique and the product of their research, because it is made of metals whose prices go up. Perhaps, you have not heard of "Hedging" to protect against these losses. And if they do not hedge, perhaps you are not aware of the fact that the prices of these metals also go down, and then the company can make more money? I don't think your analysis is worth the paper it is written on. It looks to me that you are a short-seller of BW Reply
  • commenter
    investorgold
    2002
    Jun 27 11:05 PM
    Corus Bankshares, Brush Engineered Materials: Two Winners Among Losers [view article]
    Take a look at WHI and see what happened when they realized one of their loans worth only 80 million was bad (because of impaired collarteral) they have bigger loan portfolio than corus, the stock has declined >50% in 2 days Reply
  • commenter
    investorgold
    2002
    Jun 27 11:05 PM
    Corus Bankshares, Brush Engineered Materials: Two Winners Among Losers [view article]
    Take a look at WHI and see what happened when they realized one of their loans worth only 80 million was bad (because of impaired collarteral) they have bigger loan portfolio than corus, the stock has >50% in 2 days Reply
  • commenter
    investorgold
    2002
    Jun 27 11:01 PM
    Corus Bankshares, Brush Engineered Materials: Two Winners Among Losers [view article]
    your first 2 paragraphs are nothing but hyperbolic "baits" to small time investors ...
    that's why i said to publish all facts in your story itself and possibly remove your subjective hyperboles     Reply
  • commenter
    tchannon
    Jun 27 10:20 PM
    Corus Bankshares, Brush Engineered Materials: Two Winners Among Losers [view article]
    Thanks again for your response. I feel that your comments address and rebalance the position, as you suggested. These forums are all about open discussion and expressing points of view. I am not interested in misleading retail investors, of course - and I never said "buy, buy, buy" and never said it is going to the moon. However, I do not believe that CORS is in the dire straits that you suggest, but anything is possible. However, it is a risk, as nothing in investing is guaranteed - anything can happen. Additionally, in my original article, I did express the risk involved and that going under can certainly happen. Let's see how the story unfolds. I have no pride when it comes to things like this - we are all here to make money, build wealth, and preserve capital. Those are my #1 goals - being 'right' is secondary to building wealth via investing in equities. It appears that CORS has been beaten down and that there is value in this company from the information readily available to the investment community. Investing in any company that has lost a great deal of market cap always comes with significant risk, but the rewards are potentially big as well. Best regards and I am enjoying the discussion. Reply
  • commenter
    investorgold
    2002
    Jun 27 06:22 PM
    Corus Bankshares, Brush Engineered Materials: Two Winners Among Losers [view article]
    do not see a scenario where a bank pretty much owned and operated by the same family that founded it 50 years ago would blatantly enrich themselves at the expense of stockholders and watch the stock price of the company plummet to zero.
    >>&g...

    They are not doing anything criminally illegal. Check when corus specialized into giving loans for condos, This is only recently not 50 years. Also, check when they went public

    If you think points and concerns are valid and you respect, please rebalance your published story. You may mislead a lot of retail investors that unfortunately invest by reading such articles. Hopefully we can educate the people what they are getting into before they put a cent in     Reply
  • commenter
    tchannon
    Jun 27 02:14 PM
    Corus Bankshares, Brush Engineered Materials: Two Winners Among Losers [view article]
    Thank you for the continue comments. Your points and concerns are certainly valid and I respect them. I do not see a scenario where a bank pretty much owned and operated by the same family that founded it 50 years ago would blatantly enrich themselves at the expense of stockholders and watch the stock price of the company plummet to zero. Obviously, we have differing opinions on the future of CORS, which any investment is not without risk, so it should be interesting to see how it pans out. For my sake, I do hope I am correct, but I have been wrong before - that is the nature of the market. Yes, there is high risk here - and certainly a chance of something worse coming out of the weeds, but I logically do not see it coming to that. The actions of CORS indicate otherwise. Reply
  • commenter
    investorgold
    2002
    Jun 27 08:40 AM
    Corus Bankshares, Brush Engineered Materials: Two Winners Among Losers [view article]
    ALLOWANCE FOR LOAN LOSS: This calculation involves subjective factors which may be agressive

    Corus’ methodology for calculating the Allowance for Loan Losses is designed to first provide for specific reserves associated with “impaired” loans, as defined by Generally Accepted Accounting Principles. These loans are segregated from the remainder of the portfolio and are subjected to a specific review in an effort to determine whether or not a reserve is necessary and, if so, the appropriate amount of that reserve.

    The remainder of the portfolio is then segmented into groups based on loan characteristics, seniority of collateral, and loan rating. A reserve is calculated and allocated to each of these groups based on historical net charge-off history coupled with a subjective Management Adjustment Factor. The Management Adjustment Factor is intended to incorporate those qualitative or environmental factors that are likely to cause estimated credit losses associated with the Bank’s existing portfolio to differ from historical loss experience.

    ----------------------...

    Glickman also sold some half million shares this year...so he already has some 8 million dollar bank balance just this year by selling stock.     Reply
  • commenter
    investorgold
    2002
    Jun 27 08:10 AM
    Corus Bankshares, Brush Engineered Materials: Two Winners Among Losers [view article]
    I am betting that CORS, the Glickman's, and their very stringent loan committee that is intimately familiar with all of their loans, made above average decisions and will not be impacted as much as the market and the shorts are betting. Certainly, it could happen, but if it was really an imminent risk, the Glickman's and CORS would face major charges of enriching themselves via company cash when a collapse was imminent.
    >>&g...
    what major charges are you talking ? The most that can happen in most corporate mis-governance is a class action law suit , that will eventually end with monetary settlement. Happens all the time.

    >>&g...
    The developers, in the first place, have to justify obtaining the financing, regardless of what source and regardless if it is secured or not. Banks simply do not just hand out dollars to these developers. Additionally, at some point, even if it is a few years, things will turn around and the projects will be complete and units will sell. The developer could bail out now, but why? To lose all that has been put into the deal - which is sizeable from a personal standpoint for these developers - is not going to happen. Things might be tight for them, but they will wait around if they need to before defaulting. Therefore, I would surmise that CORS will come out with some battle scars, but will not collapse, despite the negativity facing this sector.

    Again they made out secured loans on inflated collateral. So you give a loan of 100 million considering development is worth 100 million but then turns out project is worth Only 60 million. Who loses ?

    Although writing off a loan will take time(years), the number of non performing loans will increase significantly this year and next year. This will increase their loan loss reserve...this year and next year

    It is not hard to see what will happen to their regulatory capital ratios if their loan loss allowance goes from current 50 million or so to 300-400 million . And remember it can get to that 300-400 million
    Loan loss provision is based on subjective judgements by management based on historical charge offs, etc.. So current calculation, is very skewed . They have never in their history taken such huge risk by giving out so many high value loans in HIGHLY inflated condo market. Factor that, loan loss provision seems rather oddly small number


    >>&g...
    Yes, there is great risk, but that is why CORS is currently yielding about 6% (excluding the special one-time dividend). If eating loans to the point of going under was a real possibility, I doubt CORS would continue their dividend payments to shareholders. For them, making a bad decision knowing what will happen in the end if it is bad is an almost definitive path to having to forfeit their monies received from the strategy and watching their many-multi-million dollar stake deteriorate.

    Insider owning some 40% is good. But I do not work in securities industry. I have heard from many people the amount of manipulation that happens in securities industry. The heavy shorting, the announcement of $1 per share special dividend doesnt give me the confidence to invest or short this stock.
    This special dividend is by no means a prudent measure when the entire housing market is down and going to be down in foreseable future and esp since they have seen experienced first time in their history an increase of their problem loans . So i dont know what the intent of management is ...ward off shorts?
    i dont know. As i said, some stocks are manipulated by hedge funds and others in ways ordinary investors cannot and will not know.
    just staying from those is the best thing to do for retail
    Again, banking on Glickmans stake is not good idea. Glickman would have made >1 million dollar a year for several years, may have already sold millions in stock     Reply
  • commenter
    tchannon
    Jun 26 10:39 PM
    Corus Bankshares, Brush Engineered Materials: Two Winners Among Losers [view article]
    investorgold2002 - Thank you for your comments. Yes, I am aware of the risk that CORS faces in light of this very slow real estate market - and I am from South Florida, so I have seen it first hand. Yes, it is possible they will have to eat many loans and end up in a liquidity crisis - that is the risk and it very well could happen. I am betting that CORS, the Glickman's, and their very stringent loan committee that is intimately familiar with all of their loans, made above average decisions and will not be impacted as much as the market and the shorts are betting. Certainly, it could happen, but if it was really an imminent risk, the Glickman's and CORS would face major charges of enriching themselves via company cash when a collapse was imminent. Could they be doing that? Of course, it is possible, though unlikely. It may take some time, but I am willing to bet that CORS will not be impacted as much as the market is anticipating. I have spoken with the developers of many condominiums - and all have loans. Simply writing off the loan and abandoing the project is not realistically an option. The developers, in the first place, have to justify obtaining the financing, regardless of what source and regardless if it is secured or not. Banks simply do not just hand out dollars to these developers. Additionally, at some point, even if it is a few years, things will turn around and the projects will be complete and units will sell. The developer could bail out now, but why? To lose all that has been put into the deal - which is sizeable from a personal standpoint for these developers - is not going to happen. Things might be tight for them, but they will wait around if they need to before defaulting. Therefore, I would surmise that CORS will come out with some battle scars, but will not collapse, despite the negativity facing this sector. Yes, there is great risk, but that is why CORS is currently yielding about 6% (excluding the special one-time dividend). If eating loans to the point of going under was a real possibility, I doubt CORS would continue their dividend payments to shareholders. For them, making a bad decision knowing what will happen in the end if it is bad is an almost definitive path to having to forfeit their monies received from the strategy and watching their many-multi-million dollar stake deteriorate. Yes, stranger things have happened and there is risk involved with CORS way more so than say a Bank of America that is better diversified, but CORS is not going anywhere. Thank you for your insight - I welcome all points of view and discussion. Reply
  • commenter
    investorgold
    2002
    Jun 26 09:53 PM
    Corus Bankshares, Brush Engineered Materials: Two Winners Among Losers [view article]
    terence, your homework on corus is lacking. do u know the average size of their loan ? do u know they ONLY have 165 loans for 4 or 5 billion dollars of loan. do u know that 65% of their loans are each 100 million ? So you calculate what will happen to your 300 million "FREE UNENCUMBERED CASH" when just 5 of their 165 loans need to be written off in this extremely bad real estate condo market. Do you also know that most of these loans were underwritten in the last few years in the booming condo market (at the time) when real estate prices were inflated ? so the loan's collateral cannot fully recover most of these loans
    your analysis is half baked .     Reply

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