Not sure where the value is. Tradings at around3.5 times book. And what the CNBC dude claimed was
free cashflow is actually cash flowing back from the portfolios they bought. i.e if you pay 100 dollars for a portfolio of loans and you recieve 60 dollars back in a certain period most of that money is a repayment of what you laid out.
seems to me they buy portfoilios of distressed loans and are doing a good job of making a good return on their money, and the increasing property values are helpong out., especially if they are leveraged. But how much of the sucess if a onetime revaluation that has taken place as a result of them having bought a swack of their portfolio near the bottom of the market.
.i.e the low handing fruit from the distressed loans market has clearly already taken place, and therefore going foreward the ROR isn't nearly going to be as large.