I used to work for a competitor of MMA. MMMA is a market leader in the Tax Credit Syndication business and will continue to be a leader. What they are going through is very difficult, and yes they dropped the ball. But this will pass and they will no longer have huge accounting costs, therefore back to big Div they go and they will be relisted by the NYSE.
This is a great opportunity to buy the stock. Management would be buying but they can not.
I rate strong buy!
MMA had a great franchise in tax credit syndications. It's been marred by uncertainty regarding its financials, its disclosure last year that it misappropriated tax credit funds, and lawsuits with general partners. Its syndication volume last year was materially down from prior years. Part of this is due to general disarray in the tax credit market due to the exit of some of the largest tax credit investors.
How can you know any of this? They haven't provided any information of substance in 2 years. IT is 2008 and the last statement is from March 2006. Accounting issues are real issues when it is due to companies using the books to hide operational issues.
Based on their statements this summer which conflict with this weeks info, it is obvious that the management team has no idea what their financial position is or even how much cash they have or don't have.
Even if you are right that they are good at generating revenue (although I don't know how you would know such a thing without a financial statement) they clearly have no idea how to cover their costs. Thus spending $2 to generate $1 in revenue is rather stupid - don't you think. That your company can't compete with that is your own fault.
Maybe everhting you say is right. But why buy now and not wait til it is OTC and goes down to $1 or less. You make no sense and seem to enjoy catching a falling sword, knife, satellite.
Look at their core businesses, there is nothing wrong. MMA makes money and does not do home lending. We had 50 LP to roll up at the company I worked for and it took over 1 year to fix. MMA has 2000, when they fix it, back to normal business they will go and the stock will go back over 25 where it should be.
Take a strong look at where the trouble lies and you will see this is opportunity.....
It would be very odd for a company to announce that their recently cut dividend might not be sustainable. The whole point of a cut is to take it down to supportable level so you don't have to cut again.
I can't find this story anywhere... anybody have a link?