Since the segregated account is still seized by the regulators they are not allowed to write new business in the US?
IMO there are now more management effort than before. Please google: Doral-Seeks-Buyers-For-800M-NPL-Sale-
This sale (if it goes through) can end the need for Doral Recovery Unit altogether. Doral Recovery currently has about $1,8B portfolio.
Today was the highest volume since the 19th of September, 2013 and the 2nd highest since the R/S last summer.
Somebody is buying since the stock did not drop more than -3,21%
Yes indeed. He still has a lot of work with the turnaround strategy. As the captain of DRL Glen will stay till the end.
I think this target price is from Sandler O'Neill + Partners and done in December 30, 2011 before the R/S. Yahoo: D
Thanks Panick. Hard choices for Doral Financial. For the investors this event could mean the stock will be an instant 5-bagger but for their PR staff very unfortunate. Their conference call gloomines could be for this reason.
Just a "C". They may have started to downsize in PR too late. If you read the Conf call transcripts you may notice that the CEO Glen Wakeman is giving different messages each time as if he would not have any strategic plan or visibility for the future at all. In Q1 2013 he said they are going to increase to topline and become a bigger bank. Lately he has been saying they will become a smaller bank. I believe that currently the real strategy leader is CFO D. Hooston.
Yes here too, an "F". They are lousy on communications and it is if there where no shareholders at all. They are quiet for months in a row. Lately even the PR enterprising women related stuff is gone.
They are downsizing heavily in PR. Maybe they plan to to sell PRG ex-U.S deposit for a small premium to raise capital.
My projection for the Q1 loss is -$15M.
The common stockholder equity after the possible bulk sell of the NPLs (assuming they would lose another $277.5 in the sale) would get rather low.
After the sale the common stockholder equity left $352M-$277,5M=$74,7M or $11,3 per share.
What would be their Tier capital ratios after the $277,5M write down?
They might be able to raise still $50M new capital by e.g. selling 8,45M shares in a private placement. I wonder why they did not do this when the stock was $24. This dog could have received $160M capital injection.
FDIC seizure is still far away. In 10K there is an analysis of the fair value of they assets and liabilities which indicate that there are $200M+ more than the carrying value. The tax assets and the book value added there can be $131 per share for the common holders. Can't see how they would just burn their equity away knowning the PR market reality. They will do something this year.
I projected that they will make of loss of -$15M in Q1. They have years to go with this low loss rate. Plenty of ups and downs left.