It always amuses me when sell side analysts begin coverage with a positive outlook. I suppose what else can the lead underwriter do? What a joke. This company is plagued with undisclosed legal issues and defecting employees. Typically after an IPO company employees stick around and are motivated to get to work. Isn’t keeping and attracting key employees one benefit of being public?
Interesting analysis on your part. To add to your thoughts, Imperial lost a key court case today that will significantly adversely impact its marketing practices. Imperial's short lived 20% discount rates just aren't competitive in the market. FBR knows better than to push this stock. In fact, FBR knew of the issues before the offering.
This company has lost all of it's good employees and replaced them with company lackeys. They are only getting deals done because the settlement market is still depressed. Plus they are the only firm buying Phoenix paper. They will likely crumble real fast when competition enters the market. My opinion, this firmmis committing highway robbery, but for now able to get away with it.
Its standard practice to initiate coverage with a positive outlook...buy, strong buy etc. But like wall street in general, noone can be trusted. As far as this company, based on some of the remarks here, it sounds like a pretty iffy situation
I don't know what you've heard or where you heard it, but you need to check your facts. I heard no one has left. As a matter of fact, employees who work, or worked, for Peachtree are leaving and trying to get into Imperial.