I just read the 10Q, and I think we're dead money for 2 qtrs.
IMHO, originations will continue to be low in the 4th qtr, posting a small loss, servicing profits should increase a little in the 4th, and the long term portfolio will continue posting multimillion dollar losses. BUT, the big unknown is the warehouse lending biz. According to the 10Q, they have about $265 million to lend. Does anyone have an idea of what kind of return we should expect on these funds?
...why we continue to write down the Long Term Portfolio? According to the PR, it's because of "liquidation of defaulted loans." Isn't this foreclosure era finished? I live in So California, and my real estate associates say the market is HOT, HOT, HOT!!! There are no properties available. Homes in my neighborhood alone have gone up over $100k since last year. So, when will these LTP write downs end? Please help me understand this.
I have a cost reduction idea. Let's pay the executives based on the performance of the company, and not pay them exorbitant salaries for mediocrity. Since the old man died, this company is slowly dying with him.
I know you push the preferred's on this board all the time. But I don't get it. As I understand it, the company doesn't have to pay a divy on the preferred's, and they don't have to redeem them. They could just carry them on the books forever. So, where's the value? What am I missing here?
I think you're on to something. The IT department produces profit and loss reports at the end of the month and the end of a quarter. So, word of those numbers spreads throughout the company very quickly, i.e. water coolers, lunch rooms, etc. When employees heard those numbers, maybe they started to sell their shares, therefore the light volume. Remember, officers and directors are defined as insiders, not all employees. Besides, they probably told their family and friends what's going on, increasing selling pressure. Look at the recent drop, it stated after the end of month.
Costs had to be up (office openings, layoffs, etc.), originations were down (source: Wells Fargo, BofA, earnings reports, etc.), and we still have those nasty write downs, so, earnings could be poor. Time to buy some protection.
I don't. Companies sometimes wait til Friday to report bad news. Nov 1st is a Friday. At previous cc, they warned that the second half would NOT be good, earnings and divies.
A) He thinks it's a good long term investment
B) He's a personal friend of Joe and he's banking the company
C) He wants to own the company (tax loses)
D) He's nuts and a horrible investor
E) Other, please explain
What's confusing is that Pickup bought when no insiders did. In fact, insiders have been sellers (last Dec). So, why did he do it?
Hey Pickup, if you read this post, come on here and answer the question.
At the end of the day someone stepped the stock down with lousy 100 share transactions. It shows how easily this stock can be manipulated. Everyone PLEASE don't place market orders when selling.
BTW, does anyone know what % of the outstanding Joe and the other insiders hold? I think Pickup holds about 15%.
Everyday, we continue to drift lower. I bought in the $11s. I bought in the $10s. I bought more in the $9s. I'm done. I wonder why Pickup doesn't take a more activist role? If we don't have a great 3rd qtr, I think we're toast. I could see this thing drifting down into the $6 range.
I'm convinced that Joe knows the mortgage business, but I'm NOT convinced that he's the right CEO to run this company. I have waited many years for this company to return to reasonable profitability, but I'm afraid I've lost my patience.
So, where is this "something up our sleeves" announcement that was mentioned at the annual meeting in July? Will they wait and make the announcement in the earnings report, or are they just blowing smoke?
"Citigroup joins Wells Fargo & Co. (WFC) and Bank of America Corp. in reducing home-lending staff. A surge in borrowing costs slowed refinancing by more than 70 percent since September 2012 and curbed what had been record profits.
"Mortgage applications in the U.S. plunged last week to the lowest in almost five years, according to the Washington-based Mortgage Bankers Association."
Wasn't IMH also going to layoff some people? How will this impact 3q earnings?