johnhaskell

Why Thornburg Mortgage Will Survive

Per Bloomberg www.bloomberg.com/apps... Thornburg management is seeking a "new business model" either as a generator of conforming mortgages or as a bank. In other words management concedes that there is no value in their previous business model. How much would you pay for Thornburg's office supplies and furniture? Because that's pretty much what they've got.

I worked up an earnings model for Thornburg, it goes like this:
12% cost of funds > 7% interest rate collected on mortgages = TMA.BK.

As for the "pop" from $0.25 to $0.35, it has been my experience that penny stocks "pop" all the time, but it's usually because of a spam blast.