"The ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN (MORL) is about a month away from its first anniversary but has already solidified its reputation as the highest yielding U.S.-listed ETP. MORL’s monthly distributions to owners totaled nearly $1.30 per note during the most recent quarter. Given its current trading price of about $19.20, this places the current yield of MORL on the north side of 27%."
Normally, one would think they would give a reason why the CFO is retiring. But they couldn't say "we're setting up for a buyout" ... so no explanation was given. But here's the reality:
You start going through the employees ... how many are highly paid and not transferable to a new employer? CFO was a problem, because any acquiror would already have a CFO ... now he's out of the way.
Poor CEO wrote so much explaining CFO retirement ... but it's not a problem in these circumstances. One step closer now to a buyout.
You can find the CFO's employment contract online. If there is a change in control, his contract would automatically be extended for two years. I am guessing he didn't want to continue to work that long for a new company.
Statute of limitation is not running out on the Pole Tax collection, because the time while it's being argued in court doesn't count under the Texas Admin. Code:
"Sec. 111.207. TOLLING OF LIMITATION PERIOD. (a) In determining the expiration date for a period when a tax imposed by this title may be assessed, collected, or refunded, the following periods are not considered:
(1) the period following the date of a tax payment made under protest, but only if a lawsuit is timely filed in accordance with Chapter 112;
(2) the period during which a judicial proceeding is pending in a court of competent jurisdiction to determine the amount of the tax due;"
More expenses than they can fund.
Wouldn't worry about the CFO ... CEO is on top of everything. HBKS isn't one of those banks where they have a Conference Call and the CEO turns the financial discussion over to the CFO.
CFO taking a hit for the team ... thanks!!!! But he's not really losing because he's going to make more on his stock!
Market underestimating seriousness of NY Labor Case ... just like the cruise ship in the Med that hit the rocks and people followed instructions to stay in their rooms ... and then drowned.
"Prepare For Tough Times If Your Job Has Anything To Do With Real Estate Or Mortgages
If you have a job that involves building homes, buying homes, selling homes or that is in any way related to the mortgage industry, you might want to start searching for alternate employment. Seriously. Interest rates are starting to rise dramatically, and mortgage lenders such as Bank of America, Wells Fargo and JPMorgan Chase are all cutting thousands of mortgage-related jobs. Last week, mortgage refinance activity plunged to the lowest level that we have seen since June 2009 and total mortgage activity dropped to the lowest level since October 2008. Unfortunately, this is only the beginning. Mortgage rates closely mirror the yield on 10 year U.S. Treasuries, and the yield on 10 year U.S. Treasuries has nearly doubled since early May. But it is still only sitting at about 3 percent right now."
RICK has to be thinking about Sutherland v. Ernst & Young LLP, recent Second Circuit case. But arbitration agreement still has to be a valid contract. Why would anyone agree to arbitrate something that a court has already ruled on and said it's illegal? Arbitration agreement like duress if signed now. So I am telling you ... they don't have it fixed by a changed policy!
Purpose of arbitration is to avoid costs and hassles when the answer is in doubt ... now NY Federal District Court has ruled that dancers are employees, no if's,and's or but's ... so arbitration probably doesn't work in the Second Circuit. So idea that problem is fixed with changed policy ... good luck! That will be the next case.
U.S. Supreme Court case was in 2011. Even if he was talking about recent Aug. 2013 California regional case ruling, it still involved multiple stores and managers: “Though plaintiffs succeeded in illustrating attitudes of gender bias held by managers at Wal-Mart, they failed to marshal significant proof that intentional discrimination was a general policy affecting the entire class.”
Because they are in the RICK Company Press Release:
1. Judge said that parent company is not liable. (He didn't say that; he just didn't grant Summary Judgment on it, which is almost never granted on the issue in the Second Circuit.)
2. Ruling that dancers are employees will be overturned on appeal. (Judge said courts around the US overwhelming say exotic dancers are employees; SJ is hard to overturn.)
3. Tips count as wages. (Judge already ruled they are not wages because other courts have said they can't be because employer doesn't pay or report them; again, SJ is hard to overturn.)
4. Class will be decertified. (Wal-Mart case was different; so many stores with different managers that might vary the facts - here it's a common issue with just one club, one manager; only the damages are different.)
5. Dancers will be "unjustly enriched." (No, RICK's motion denied and SJ granted to the dancers; SJ is hard to overturn.)
Still discussed eight years later in Press Release regarding CFO retirement.