Given the nature of the title business, there is
a lag between less title production and reducing
payroll. Rising mortgage rates at the beginning of the
year threw cold water on the refi business. Q1 EPS
will likely be between 30 and 40 cents, significantly
below the 46 cent Zacks consensus estimate. By Q2,
following reduced personnel costs and hopefully still
robust housing activity (new home and resale), FAF
results should improve esp. as the mix shift from refis
to new home and resale transactions (more profitable
to FAF than refis) which helps margins.
knows how the shares will react when lowball Q1 results
come out. Given the crushing collapse in FAF's market
cap, they might even rally (buy on bad news, sell on
good). Longer term, assuming a good economy with strong
job formation and continued low inflation, this
company looks set to rock & roll as:
digitizes its title plants, boding well for title
2) Continues to grow its title top line by acquiring
regional title firms, thus offsetting likely stagnant
3) Continues to leverage its
extraordinary distribution channel access to sell more and more
higher-margin real estate information services as broad
industry consolidation (esp. re lenders) continues. Here,
it is important to remember that the business model
is extremely attractive if volume gains can be
achieved. The operating leverage of issuing more flood,
appraisal, credit, etc. reports is very material as the cost
structure tends to be fairly fixed given FAF's tremendous
database and software investments. This business is
perhaps somewhat comparable to selling software or TV
programming; once the master tape has been made, variable
costs associated with higher unit sales are quite
4) Diversifies away from the cyclical RE industry at
the margin by leveraging its growing databases in
areas such as credit reporting, pre-employment
screening, multifamily resident screening, automotive
tracking, default, and loss mitigation.
5) By virtue of
having larger and larger earnings contribution from the
information services side of the house, FAF will hopefully
over time enjoy a higher multiple of earnings usually
awarded document (analysis of records and production of
reports) companies. In short, a P/E expansion combined
with a resumption of consolidated earnings growth at a
15% plus annual clip from an earnings power level of
roughly $2.70 a share this year.
Muff_ie is me ! LOL G. C. was so nice ! All the
fishes and corals told me to tell you hi and hurry back
! They all want EATME.CUM. Oh yeah by the way that
chick also, remember ! Hahaha Not you HDLADY ! Drew,
Jock Bhahahaha........ !
Bye ! all and don't
say you got me Jock, you biggest lier !
No way EATME.CUM, iTS looks more like
Jockstootight gargyle in front of Motel 6 !
Bhahahahahahaha........... So, I see you are still messing with message
board leader JOCKSTOOLTiGHT ! Its not fun for me
anylonger plus I made a big mistake buying this slow snail
pase Company ! I really think FAF is on the way down
again to fill that gap between $15.00 and $16.00 ! What
do you think EATME.CUM ? No flunkies of
Jockstooltight need answer my post !
Especially mighty Titan,
Opootimus, or thats right you too HDLADY, Hahahahahah
DOWN WITH THE UNDERVALUED AND ALL THE GARBAGES ON
HERE, including Jockstooltight, the biggest kiss ass !
she keeps scratching herself, that's why the
fingers aren't typing.
All FAF board readers and
investors, please remember to thank jockette for causing the
stock to go up on Monday. Jockettes great analysis and
advisory commission with the FAF Senior Mgmt must have
caused the stock to take a huge ump forward
Thank you jockette...you and only you knew FAF was
under-valued. Once you leaked the news like you do in your
pants when you see your brother, you caused all these
investors to take another look at the stock.
you all mighty jockette. My your strap be strong
enough to carry your tons of bullsh_t.
changed handles. More research and great analysis
that will definitely cause FAF to soar tomorrow. I bet
jockette has her one day order to sell FAF at $30
Hurry, jockette you herpes shank, change
your handle and run like your mommy always taught you.
After flying into OC today, I saw that FAF museum still
conducting that snail construction. Parker must think he is
building the Sistine Chapel or something. With one
modification, the idiot jock as the head gargoyle.
I will look through the 10Q. Right now I think
the 9.8M they reported plus 11M( 7.4M/(1-33.9%),
before tax) = 20.8M. It is about even with year ago
Any way, like the fundamental, bought at 17
Good Luck to all longs.
RE: Its real-estate-info income has droped
significantly while revenue has a slight increase. What is the
story behind this?
estate information pretax profits are generally
unaffected by the type of real estate activity but increase
as the volume of residential real estate loan
transactions increase. As previously noted, real estate
information pretax profits for the first quarter 1999 were
adversely impacted by the change to the revenue recognition
policy for tax service contracts.>>
Earnings Day News:
<<Reported net income for the
first quarter of 1999 was $24.9 million, or 40 cents
per diluted share, and included the effects of a
previously reported accounting change for the company's tax
service contracts which became effective January 1, 1999,
on a prospective basis. This accounting change
resulted in a decrease of $7.4 million on an after-tax
basis, or 12 cents per diluted share. Thus, earnings for
the first quarter of 1999 would have been 52 cents
under the former accounting rules. These comparable
results exceeded the previous record-setting 1998 first
quarter operating net income of $25.1 million, or 44
cents per diluted share...>>
helps, have a great Monday.
but when I looked at its 1Q result, I have some
question about its operation. Hope veterans on board will
help to clarify.
Its real-estate-info income
has droped significantly while revenue has a slight
increase. What is the story behind
Direct operations $260,323,000 $225,719,000
operations 260,661,000 176,536,000
Information 136,738,000 134,320,000
operating revenues $695,545,000
INCOME BEFORE INCOME TAXES
Title Insurance $35,161,000 30,261,000
Estate Information 9,773,000 20,873,000
before corporate expenses
and minority interests