In financial institutions like MXT or DVI, it's more about margins and less about debt levels or cash flow (as long as you have plenty of access to funding). Depending on the terms of the deals, accounting rules have required a couple of DVI's securitizations to stay on the balance sheet as opposed to removing the assets and liabilities from the balance sheet (like the 8 billion in debt that MXT has off the balance sheet). DVI continues to have plenty of liquidity and access to securitization markets (key to their funding) and other lines of credit as evidenced by the many deals they have done over the last year. Credit quality is more important than debt levels and net charge-offs as a percentage of average net financed assets have never been higher than 1% annually in the last three fiscal years for DVI.
PS - I'm no guru. Don't listen to that crazy Kid character...LOL
Thanks for your e-mail. I looked at the trading in DVI today and I will hold of for a few days. Although your analysis pushes me to take a nibble, today's trading led me to believe that DVI will bounce a bit in the next few days. Since I am not a technician I cant say it will retest lows, but I think there are some more sellers in the wing who will not want to wait for the resolution of this cloud over their heads. I'll jump in below $5.80.