Sachem: I'm Out Of The Commons And Into The Baby Bonds

Leo Imasuen profile picture
Leo Imasuen
6.93K Followers

Summary

  • Sachem's baby bond SCCE offers a better return profile than its commons.
  • The hard money lender recently reported fiscal 2022 third quarter earnings that saw revenue growth of just under 60%.
  • A worsening macroeconomic environment has rendered the commons too risky.

construction site for multi-family buildings built by the developer

olejx/iStock via Getty Images

I'm out of Sachem's (NYSE:SACH) common shares on the back of a number of worsening credit market conditions, the looming prospect of a recession, and the recent dividend cut. The odd 7% dividend cut

Sachem securities

QuantumOnline

United States Fed Funds Rate

Trading Economics

Freddie Mac's Primary Mortgage Market Survey

Freddie Mac

Median Sales Price of Existing Homes

St Louis Fed

This article was written by

Leo Imasuen profile picture
6.93K Followers
The equity market is an incredibly powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. These two polarising forces lay at the core of my stock coverage. The aim is to avoid wealth destruction and embrace wealth creation. I primarily focus on sustainable companies, growth stocks, deSPACs, and income investing.

Disclosure: I/we have a beneficial long position in the shares of SCCE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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