I was on the conference call with a number of questions, but either the attendees or the conference operator ignored my requests, entered as Star 1. Only one person got through. I do not know if there were others who were ignored.
My questions were as follows:
Please explain the significant increase in REO holdings compared to two months ago. the holdings increased from about 250 to about 360.
Please explain what your specific lines of business are, which lines are expected to be the major producers, and any estimates you have for future income from each of those lines of business. Are there any lines you expect to exit in the near future and any you expect to add in the near future?
When do you expect to turn the corner with respect to repeatable net profits and positive cash flow?
These are reasonable questions from share holders. I was ignored. Were you?
I think a couple of those ques have been anws in past CC. I would assume that Originations would be the "flagship" business and all the other segments of the company will "piggyback" off of the business the orignation creates. I'm sure they would contribute the REO to the lack luster economy. My big concern is revenue. Seems like the cash flow should be increasing. I follow other Mortgage bankers and it seems as if we arent even doing half of what others are doing. But I will say that many didnt have to fight their way back like Impac. (and still fighting)
I spoke with Mr Justin Mosio, their IR Guy and got the following answers, which I am paraphrasing:
1. The apparent substantial increase in REO properties was due to the change in the way properties were listed. In the new list, properties which are available and properties in escrow are listed. In the old list, properties in escrow were not included. My impression is that the change was needed since a large number of in escrow properties fall out.
2. There is no present intent to leave or enter new market or business areas.
3. The focus of the company will be to originate and sell mortgages, and they are opening new offices/locations to do so.
With the very turbulent existing conditions and uncertainties, the company is unwilling to provide any guidance with respect to growth or profitability.