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Broadway Financial Corporation Message Board

  • bhil22 bhil22 Mar 7, 2013 11:29 AM Flag

    NOL Carry Forwards

    In their 3Q filing they moved the Deferred Tax Asset to $0 but this does not mean it's gone. By accounting rules you have to have a clear picture of positive earnings in the forward year in order to maintain the Asset on the balance sheet and they disclosed that because they, at that point, could not show those earnings prosepects with certainty, they wrote down the last of those assets to $0 and moved them into the valuation allowance which is now $8.5m. This is important to note because the Asset sale they announced 2 weeks ago should clear the path to earnings which they can then offset with the NOL and not pay those taxes, which will boost the bottom line even further. This asset that they may now be able to monetize sooner than later is more than 4x their current market cap. Nowhere to go but up.

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    • Totally agree - This is the button now and next ER should be fun to read - This is happening this month so soon we will pass 1 buck again and stay there.

      I imagine the PPS should be around 1.50-2.00 $ now !

      • 1 Reply to dkjenken
      • I did a little more homework. If you look at 3Q earnings, there are one time items both ways that nearly offset each other to break even earnings. They may take a bit of a hit on the sale of non-performers although the CEO's comments that there would be "no material charge". If my math is correct, with $2m in earnings and post recap share and book value assumptions, if they move to 0.85 P/B, that should translate to $1.57 per share.

        Sentiment: Strong Buy

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