He said that they are a pure play industrial and that they deserve a higher multiple for that. He said that a Real Estate firm (former GE Capital, I assume) is just a Bond (proxy, I assume). And so all together, he would be a buyer in here at 28.5. (pre-open today). I respect that man for his convictions! He may not be right all the time (like today with GE closing at 27.3) but he has courage behind his convictions. On the other hand, maybe he just likes big cap stocks that sell stuff and consumerism behaviors are his bailiwick.
Bad stocks go higher-- CMG, TSLA, EVERY BIOTECH, ETC
Good companies that have strong cash flow, pay dividends, and produce real things necessary for life (fertilizers), not to mention for convenience (lithium ion batteries) Go DOWN. Makes perfect sense when you consider that the entire market is levitated on zero % money. And hedge funds get to 1st: view then 2nd: front-run your orders.
The same could be said of 1/2 the tech and pharmaceutical companies in the public markets. Does anyone think Blackberry or BestBuy might not need cash in 4-6 quarters?? Those are two companies I saw mentioned on the right side of my screen.
EXPEDIA: 10% revenue per room decline!
If AI shorted Fed Fund futures through 2018, just for instance- it would be a charge against earnings in the current period- because they cannot justify that their cost of funds will run lock-step with fed-funds--- but we all know that if the Fed were to raise FF's in June- then AI's cost of funding would rise commensurate with that or possibly more. Conversely, if they sold short or bought puts against current coupon MBS securities, they COULD receive hedge accounting treatment and thus (in my example) amortize the cost of the hedge over multiple quarters. Just saying that we dont know the details of these charges against earnings in specific terms, just that there is a large difference between GAAP and Non-GAAP-- and that it can be explained in taking up-front charges that might pay big benefits later.
Looks to me like they put interest - reading between the lines, it looks like AI put on interest rate hedges of about 1/3 of the portfolio or more. That is a GAAP charge against earnings, but on a non-gap basis they used the accretion of some discounts on purchases to offset the hedge costs. I for one am please that they are 1/3 protected from rising rates, now. And that type of management should be rewarded, IMO.
Much easier to formulate a value when you know the regulatory framework.
Amen- then half the clowns on this board would leave!!! They pretend to understand the business of MSR's and fail to understand the ramifications of a TRUE default on the OCN debt. I would love to see a huge stock dividend. Then all the naked shorts would be forced to capitulate.
by your logic- the mistake of bidding too much ($1.55B) by Ocn is such a crime that they should be punished by state regulators, hedge fund lenders, ratings agencies, and sore losers on the Yahoo Board who really are more about sewing their sour grapes than making money by taking on risk. And that punishment is to disgorge themselves of much much more than 1.55B in MSRs. It should include BCY, and leaving the modified market with one lone survivor, NationStar. I say - Good Luck with that my friend. You are full of wishfull thinking. Now, if there are investors who really think that this is a good thing for the financial markets, and they are wiling to collude w/ each other, risking their own investors money by breaching the lender liability laws and trying to destroy the equity holder's stake - in favor of the bondholder's stake- I say bring it! The world is on to you now.
WoW! Agree! How much does the consortium of colluding, short-hedgies pay for a law firm that cant get their facts together any better than that?
more like a co-ordinated strike by a group of colluding shorts who just happened to know before the fact that a hit-piece was about to be published.
Or Freedom Debt Relief - or American Express, Discover, Capital One.....Citi, Goldman, B of A--
I guess its too capital intensive for these guys...
Except that Paypal is owned by Ebay now
any serious answers?
Very telling-- large bear raid this AM early- the Blue Mountain article purporting act of default. Have they ever heard of a lender liability suit? Thats where a lender deliberately undermines the equity holder's position by posting incorrect information which is intended to drive down the price of the stock. If Blue Mountain doesnt have good grounds to say that OCN is in default on the notes, then they are going to be left wide open and exposed to a lender liability lawsuit-- assuming they are involved with the equity (shorting stock buying puts, etc) I would like to see the law extend to bond hoders that have used CDS to hedge their bonds/notes, because it only shows their pecuniary interest in manipulation of the stock in a more profound light. !
It costs 5-8 mm to acquire,drill, frack and recover 160,000 barrels of oil from one well (a great well). And, there is a limit to the amount of shale oil. How is The Cloud limited in terms of competition and complexity? What are the barriers to entry? Is not this space already over crowded?
But I doubt it- this is a huge fee generation machine for the free-market, capitalist system of US banking. It would be very difficult to imagine that any group of shot-sellers could have this type of effect on such a vital part of the financial system. I, for one, hope the SEC will look into their manipulative schemes.