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  • Home Loan Servicing Solutions: A Potential Tax-Avoidance Scheme Hidden Behind A Veil Of Complexity With 35% Downside [View article]
    What you didn't address is that HLSS does hedge through fixed rate note issuances and rate swaps. Erbey addresses this in most quarterly conf calls, see mid-year 2013 comments from Erbey:

    "The final ratio [in slide presentation] is floating rate to total debt [and] shows why we believe our financing strategy protects our earnings from rising rates. Most of our debt 86% as of June 30th [2013] is committed six term notes with tenures up to five years. The incremental 14% of our debt that is not fixed, we hedge almost all of the rate risk."

    "It's important to understand that the advance rates on our borrowings are fixed for the life of each note. So none of our debt is subject to repo risk and our earnings are not dependent on the forward yield curve."

    So, contrary to what you're saying Shaun, it does not sound like HLSS has a lot of interest rate risk... can you address this?
    Dec 2, 2014. 03:40 PM | 2 Likes Like |Link to Comment
  • Home Loan Servicing Solutions: A Potential Tax-Avoidance Scheme Hidden Behind A Veil Of Complexity With 35% Downside [View article]
    "Thus far, HLSS has benefited from the low-interest rate environment but faces incredible risk to their bottom line once interest rates gradually go back up."

    Can you elaborate on your comment about interest rate exposure? -- you seem to imply that they have direct exposure to interest rates, but my impression was that they are largely hedged--perhaps through their sub-servicing agreement with OCN.
    Dec 2, 2014. 10:08 AM | 1 Like Like |Link to Comment
  • Funding Shortfall, Foundation Selling, And Flawed Structure Likely To Result In Downward Spiral At AFSI [View article]
    "the AmTrust stock that Hod and Chesed need to sell cannot be sold to those same disqualified persons." Maybe I'm simplistic in my thinking, but generally where there's a will, there's a way. Why wouldn't the K's have an unaffiliated friend or attorney act as a straw man to accept a donation of shares? Or create an offshore trust that's controlled by who knows who? to receive the donation,. etc. just seems like someone with a clever attorney could figure something out.
    Nov 28, 2014. 02:23 PM | Likes Like |Link to Comment
  • Special Diversified Opportunities: The Ultimate Deep Value Play With A Favorable Risk/Reward [View article]
    Daniel,

    Thx for the write up, although these guys seem to taking their own sweet time in finding something. I accumulated a stake in the company well over a year ago thinking about the same as you and, frankly, I'm surprised they haven't come up with anything. Maybe someone should remind them that one determinant of NPV is "time" and secondly, if they can't find anything maybe they should distribute the cash to US, the shareholders! I like to see my money working hard, not napping in the shade!!!
    Nov 5, 2014. 03:27 PM | Likes Like |Link to Comment
  • Ellington Financial: Buy The Dip? [View article]
    I would ask a more fundamental question: is it a good time to be buying interest rate sensitive securities like EFC? EFC management obviously has felt it is a good time to sell more of their shares. Since they are both owners of EFC and recipients of the management income stream (which is partly determined by the quantity of AOM) it's hard to tell whether this share issuance is based on their view of available investment opportunities or concern about a closing window to raise capital.
    Sep 3, 2014. 10:54 AM | 4 Likes Like |Link to Comment
  • China XD Plastics: When The Numbers Don't Add Up, There's Over 80% Downside [View article]
    The Bleecker report created quite an opportunity for longs. When shortsellers are involved in manipulating the stock, you can often sit with a bid 5-10% below market and wait for them to try to slap the stock down when volume dries up. The stock still looks extremely cheap.
    Aug 26, 2014. 11:14 AM | Likes Like |Link to Comment
  • NexPoint Credit Strategies - Down 6% From All-Time High, Time To Buy? [View article]
    It's always tough to make a call on a stock simply based on price action, so the fact that its off a bit is hardly a reason to buy or sell. However, I agree that having a savvy insider like Dondero buying large amounts of stock is a favorable factor. My last buy was around $11 on the last pullback and I trimmed those shares in the $12+ range, however I hold a core position for the longer run as I like NHF's defensive and counter-positioning of its portfolio.
    Aug 6, 2014. 09:53 AM | 1 Like Like |Link to Comment
  • China XD Plastics: When The Numbers Don't Add Up, There's Over 80% Downside [View article]
    I'm not sure I understand your comment. Mr. Zhang is titled as "CFO" although, as with many Chinese companies, my impression is that he acts as an investor liaison, oversees SEC reporting, and coordinates capital raising activity. My guess is that the comptroller (or equivalent) actually does most of the groundwork in China as far as financial accounting is concerned in close cooperation with the CEO. So, yes, it makes perfect sense that the CFO is based in New York and is in China a good bit. If you examine other legitimate mid and smallcap Chinese companies, this arrangement is not unusual.
    Jul 21, 2014. 03:24 PM | 2 Likes Like |Link to Comment
  • China XD Plastics: When The Numbers Don't Add Up, There's Over 80% Downside [View article]
    Bleecker, I was following one of the companies that the CXDC CFO was at previously. The company was subsequently found to be involved in questionable behavior. Without going into detail, the one thing I'm fairly certain of, is that the CFO was not the cause of the company's problems. As with many Chinese companies the primary shareholder (usually also holding title of chairman) is where you need to focus your due diligence. As with his prior positions, the CXDC CFO is primarily acting as an investor liaison, which is different than a typical American CFO who is integrally involved in directing and managing corporate finances. If that is a basis of your concern, I think you can dismiss it as unmerited.
    Jul 17, 2014. 08:42 AM | 3 Likes Like |Link to Comment
  • China XD Plastics: When The Numbers Don't Add Up, There's Over 80% Downside [View article]
    This situation is reminding me a lot of AFSI... it was the subject of a short article a few months ago, basically claiming the company's accounting was phony, etc. Stock dropped from about $40 to upper $20s... mgmt. refuted the article, did a conference call, shares have since rebounded back to $40s. These short pieces can create excellent entries. CXDC has been around for several years and I've seen it tagged before like this and then go on to recover as no smoking gun ever seems to be found.
    Jul 15, 2014. 11:00 AM | Likes Like |Link to Comment
  • China XD Plastics: When The Numbers Don't Add Up, There's Over 80% Downside [View article]
    Geoff, "xinda macromolecule" comes up under: http://bit.ly/1qRppK1 Can you tell if the picture was altered?
    Jul 11, 2014. 03:20 PM | Likes Like |Link to Comment
  • China XD Plastics: When The Numbers Don't Add Up, There's Over 80% Downside [View article]
    Richard, you were calling this a fraud $5 several months ago, it went to $13, people made money--you went dead silent. Now the stock has dropped to $5.50 (already up 20% today to $6.60)... and here you are again. Do you see the pattern? If you're a paid spammer for short-sellers, fine, just be straight about it. I'm sure the shorts were covering big time on the open today.
    Jul 10, 2014. 03:45 PM | 2 Likes Like |Link to Comment
  • China XD Plastics: When The Numbers Don't Add Up, There's Over 80% Downside [View article]
    Yep, and you know it... $4 to $13. Most people do care about share price... unless they're just 'talk.'
    Jul 10, 2014. 03:14 PM | 1 Like Like |Link to Comment
  • China XD Plastics: When The Numbers Don't Add Up, There's Over 80% Downside [View article]
    Looking more and more like this article is marking a bottom for CXDC shares. When I see certain known short-sellers showing up in this thread, trying to refute every argument, it's another sign, we are bottoming. Last time I saw Mr. "R" here was just before the stock tripled... want to refute that sir?
    Jul 10, 2014. 02:40 PM | 1 Like Like |Link to Comment
  • China XD Plastics: When The Numbers Don't Add Up, There's Over 80% Downside [View article]
    Bleecker, are you certain that you were actually speaking to the CFO--I had called them a while back, phone was answered by some junior guy who said pretty much the same thing you heard--however he wasn't the CFO?
    Jul 10, 2014. 11:41 AM | Likes Like |Link to Comment
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