Looks like he is going to need 2million shares to get any $ out of this. We can maybe buy this under 2 pretty soon. Charge off number will be interesting in a couple weeks. It looks to me that this is another kitchen sink quarter for financial companies.
I think we should be expecting fourth quarter credit losses offset by debt repurchases below par. Whether this will result in a loss or profit is anybody's guess, but I tend to think we're in for a small loss.
I also think we'll see a surprise first quarter profit if the the rmbs portfolio is sold as expected.
The value here is long term, not short term.
I expect him to get paid for sure and he did some great things for sure. But CSE 3Q net income was only $8M. So awarding him $8M worth of stock just seems a bit much.
I hope you all are right that the 4Q results will justify the huge kudos.
Do you expect him to work for free?
Dividends do not equal salary. He could sell those shares and invest elsewhere with the same or higher return and maybe less risk. And then he could get a job with a salary. Not sure about the logic on this board or is it purely emotional?
I would presume we will get some current information from Delaney at the Citi presentation on Jan 28th.
Also, I believe the results for the 4th quarter should be decent. How could the Board grant Delaney 2MM shares at the end of December for his great skill in this credit crisis, and then report sub par results for the quarter?
I may have just missed it, but I haven't really heard any results since CSE announced it was "going on the offense", dropped the dividend, and sold additional shares to raise capital. I remember at the time being a little skeptical about this, but figured I'd give them the benefit of the doubt. I suspect that they never really went on the offense and have been in survival mode instead, but it would be nice to get some feedback from management at some point.
Well said (as sp get closer and closer to 2s every damn day).
I dont know how the Q report can have anything postive in it other than the usual crap about historic opportunities and spreads that we have been hearing for the last year. Maybe these opportunities are there but they are not going to help for years.
Delaney doesn't need a salary since he's drawing more than $350,000 per quarter on dividends alone. That's with the dividend as low as it is right now.
I'm all for giving out bonuses for a job well done, but I think it should also take into account that the common shareholders have gotten slaughtered. 2,000,000 shares at THIS time just seems overly greedy imo. Management is not feeling the same pain we are because they just keep giving themselves a bigger piece of the pie to compensate.
I doubt we will go that low, but I guess anything is possible in this market. I don't like seeing the large number of shares being given to management unless they only benefit when the rest of the shareholders benefit. (For example, restriction on selling below $15/sh.) I'm still hoping the SP turns around at some point, but it's hard to keep the faith when all CSE has done is drop.