% | $
Quotes you view appear here for quick access.

Broadway Financial Corporation Message Board

  • superkeeneye superkeeneye Feb 9, 2013 6:16 PM Flag

    BYFC is a very risky trade here! Why?

    Careful! Other small cap banks have recently reported losses. Besides that, Broadway Financial recently "terminated" one of high ranking employees. That could be a sign of things to come, news wise. Doesn't terminated mean "fired"?

    This is from their Feb. 6th, 2013 release:

    Item 5.02 Departure of Directors or Certain Officers.
    Effective January 31, 2013, Mr. Samuel Sarpong was terminated as Chief Financial Officer of Broadway Financial Corporation and its subsidiary, Broadway Federal Bank. Brenda Battey, former Senior Controller of Bank of Manhattan, is acting as Interim Chief Financial Officer, subject to regulatory approval.

    I really think BYFC is a very risky buy here! Extremely risky. I think it has to go much lower before it might be a buy on the rebound.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • If you follow distressed banks, you will find that this is very good news. When banks are going through a prolonged C&D order, letting go the Senior management that was with the bank during the drop is good news and ususally part of the recovery plan strongly suggested by regulators. The fact that they shed the last of their non-performing 1-4 family loans is excellent when done without a hit to capital, which means they have the loan's value marked down appropriately and means there is not nearly as much left to deplete capital. The fact that this clears the way for recap is even better. The bank is recapitalizing which will dilute current shares, but means the prospects are recovery rather than failure. it only takes a few buyers that follow the sector to recognize the prospect of book value growth from earnings coming back and then amplify it by bring the multiple higher and you quickly will see a large return. Look at ACFC. They were on a similar course and trading at $2 not long before being bought outright the other day for $5.

    • are you sure!! Chief Financial Officer scr***d up and caused to go from 12 to below $. good ridden. it should do well now, may be ceo should go as well, he did not do his job either. this should start going up

1.77+0.02(+1.14%)Jul 29 4:00 PMEDT