How do you get $2 market cap when the company has $2.50 in operating earnings excluding non cash historical losses? Those accumulated losses means they won't be paying taxes for years, and the earnings fall straight through to cash flow.
Even if they have $1.50 normalized operating earnings, after removing the refinance volumes, that is still a PE of 5 against the current stock price.
Nothing positive -- real estate prices are rising and the 10 year is back at 2.5%. There will be no tapering probably until the end of 2014. That is a lot of runway for some good quarters and positioning to be a solid non big bank lender. Plenty of good things coming up.
its really hard not to think something is wrong with the company....there's one thing to sell because of weakness but this sell off takes the cake. we made money last quarter.....so i guess everyone is anticipating a huge loss this quarter?
There will be an operating loss almost guaranteed, but should be a gain recognized on the fair market value of the securitized portfolio (since home values have increased, and foreclosures are decreasing) And the tax benefits allow for all the earnings to be retained, and invested in more new loans.