Forecast for April was $950 million during the last Q conference call. They would have beat that and were expanding ops in the Q.
If Impac had $100 million cash, they could retain their MSRs and possibly acquire more. That would take the bite out of interest rate increases.
There is a $160 million reason why they won't agree to a buyout. IRS rules under section 382 don't allow ownership changes.
They recognized $24 million 1st Q from the DTA. Expect large profits each Q, as they write up the value.
BY KATE BERRY
APR 27, 2015 4:24pm ET
Home lending at most large and regional banks soared in the first quarter and loan pipelines are bulging heading into the second quarter, early signs that 2015 could be a strong year for the housing market.
"All the metrics that we are following in the mortgage business are positive at the moment," Grayson Hall, the chief executive at Regions Financial, said on an April 21 conference call with analysts. "We, like most people, anticipate a very strong second and third quarter."
Mike Fratantoni, the MBA's chief economist, said that the purchase market has been aided by the introduction of 3% down payment loans by Fannie Mae in December and Freddie Mac in March. Lower down payment requirements for jumbo loans also have helped boost lending.
"We're at an inflection point where refinances are getting some lift and purchase volume is doing really well," said Marty Mosby, director of bank and equity strategies at Vining Sparks in Memphis.
On the earnings call, the company said to expect $950 million in April originations. Do we have to wait until August to find out?
This seems like data that an insider could use to buy more shares. I see a lot of October call options trading.
Now that the company is massively profitable, there are a lot more options to resolving the preferred shares. Here's an easy one. Reinstate the dividends as non-cumulative perpetual dividends. Offer some warrants to entice a conversion to a new share.
You may have noticed the buying has died down since the quiet period began. Why is that exactly?
The quiet period ends as soon as those results come out.
With the call options showing more open interest, it seems like someone could generate some investing income with covered calls here. The May 15 expiration $15 strike calls are worth about 30 to 40 cents when sold. That's a pretty nice income stream for holding shares about 1 month.
40 cents divided by 14.40 = 2.7% monthly yield (33.33% annualized)
If the shares aren't called, your basis is essentially lowered 40 cents. If the shares are called, you are essentially buying stock for $14.40 and selling for $15.40. That's 7% profit for one month, or 83% annualized.
This looks like a key support level for the stock and if you look at the 3 year chart, this could be the handle on a massive cup and handle chart. Most likely we will wait for earnings before blowing through resistance when earnings confirm management's guidance.