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Wilshire Bancorp Inc. Message Board

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  • cohsgrad cohsgrad May 10, 2011 11:34 AM Flag

    Public Offering

    Do you have an opinion on:

    1)Range of possible prices?

    2) Whether JPM has actually reviewed the loan files yet.

    3) When we will get the price?

    I'm kind of ticked off over two things and I'd appreciate your saying whether or not I'm off-base.

    1) They took a financial hit by transferring loans to available-for-sale in March quarter of approximately $25 million that could have been avoided by holding the loans. Now a loss is a loss whether it hits the books or not but that was $25 million pushed them into a loss position and if it was GAAP loss that required them to book the tax loss and they could have avoided it by remaining marginally profitable why didn't they do that?

    2)Why didn't management warn that the DTA was in danger of being written off in the December quarter? I'd argue that it was because they didn't anticipate the loss in the first quarter.

    So I don't know what to make of it. It seems like Yoo knocked off $1.77 in book value that didn't necessarily have to come off. I sure hope that buyers would take that into consideration.

    In the end though it comes down to what other potential losses are lurking in the loan portfolio. I think there are good arguments for pricing at closer to $4 than $3 but if the loan portfolio is worse than it appears then $2 a share or even less might be good.

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