ugly subject line -- uglier CC
did you hear the caller cry at the end of the CC? "Please Yoo please, do not dilute my fund out of existence. Please do not do sweetheart deal to 'outside' investors - please give me a chance to throw more good money after bad."
as mentioned before, balance sheet of car washes and roach motels. Yoo blows it out at cut rate prices - knocking tangible book to: Tangible Common Equity Per Common Share $3.70
even worse: Tangible Common Equity To Tangible Assets 3.92%
regulators will want 9 or 10 or 11%.
oh, and by the way, Yoo says MOU has already been drafted and on the way.
Yoo say don't hold your breath for profitability until "end of 2011".
Lest you forget, only 1.5B worth of CRE & C&I loans was reviewed for loan sale (because they ran out of time apparently). So next quarter you have another cut rate loan sale to look forward to. Want to guess what kind of haircut you'll take on your C & D portfolio?
the comment from analyst welcoming Yoo back to banking was absolutely priceless. this analyst had intimate knowledge of Yoo's previous behavior at Center bank - to first blow away the TDR & 'worrisome' loans and then recap the bank.
if experience was her guide, she made a killing shorting Sam's shares.
sad to hear analyst cling to the DTA -- btw, good luck trying to sell the importance of DTA to vulture investors in the massive dilution and likely reverse split to follow.
there is no way this should be selling for more than tangible book - offering almost certain to be priced well below. Why would anyone pay above tangible book with Yoo taking aim at the next quarter.
Branch managers making loans - no oversight.
Look at the wall - that's your brains.
Yoo pulled the trigger.
"We have taken and will continue to take aggressive steps to reduce our level of problem assets, which includes future loan sales." <-- FUTURE LOAN SALES
"The Company has developed a plan to strengthen all of its capital ratios which it expects to implement in the very near future." <-- there was NO PLAN - they are waiting for the MOU to describe just how much capital they must raise.
I like skin in the game too but not in this fashion. If the loan portfolio is in worse condition than what they have disclosed then fine maybe the shares are worth $2.75 but if not they did a lot of things that "hosed" long-term shareholders for the benefit of managers, their families and the investment banks.
Sharp words and I may be wrong, but at a minimum the lack of transparency was very disturbing.
Well of course they did! I would have preferred that they gave them a big chunk of restricted stock instead. At least that would have been straightforward rather than what has the smell of indirect compensation.
My earlier purchases were north of $5. As the shares drifted downward, my upside disappeared with potential dilution. I had it blocked out of my mind(trying not to chase it down) but price over value became so compelling...
At present, it's worth a good bit over book, but nowhere near $5.
I must admit I bought a few shares today at 3.07. Before the purchase, I was hoping it would drop back toward 2.75. Sam I'm sure is seeking redemption and I am with him. I'll probably purchase more of our newly capitalized bank.
Go Yoo! Go Yoo! I'll try to work that into a cheer with pom poms.