just because they file for bankruptcy doesn't mean they will be gone, look at calpine, delphi, dana, etc....
Much good that does the common stock. Remember BofA's preferreds are senior to common stock. For all they care, CFC goes bankrupt tomorrow, they buy out the other creditors and take control in receivership. 900 retail branches and a lot of servicing business, without having to pay a penny to common shareholders. Sit back and let them go bankrupt is exactly what BofA would do. Martin
Shareholders get paid last in a bankruptcy situation... so BOA won't see a cent until all other obligations are met(except common stock). And if CFC had tons of valuable assets laying around they wouldn't be in the mess they are in now. I'd rather be short on this than long... but I think things could go either way. Is anyone taking positions on this?
2 of my friends co-workers left the job today and wiped their hands clean of CFC. They were there for 2-3 years and your typical predatory sales lender. Not much money to be made in this business with the new lending standards and rules. Basically, you can't rip people off as easy as you used to. People just don't want to deal with this shady company anymore.
Not inbred Not a hick Not a troll. Pssst, check your mirror. My attention span is a little "longer" than the life span of a fruit fly. Bought my first stock in 1968 Been eating my own cooking since 1983. Before you got your finger wet. Had several 3-baggers first quarter. RCCC, ELON, TRCR being three. Others will remain nameless because they're not done and I'm not goin' to give gifts. Went mostly to cash July 10th when new lows exceeded 50. Simple but effective indicator. Cushion and dry powder. Concerning CFC. Name recognition, well-entrenched. I'm not going anywhere. Yep, mis-gauged support. I'm no worse off now than I was 3 weeks ago. But once again, every single tick has a buying element. Not some, not most, every one. Additionally, every single share is held. Some float. Some don't. Ax always has some in inventory. Ax presently probably has a lot of inventory. Ax demonstrated what he can do going from 15 to 20 in 3 hours. A simple gap up.................. is.......... even faster. As for your peers, takes no talent to get wet...... in a rain storm. You don't have a position, do ya? Merely a speck tater. Just how much of my time are YOU worth?
1. Shady? Ever done business with them? Doubt it. But, your buddies might be shady. Birds of a feather? 2. There is always some demand for houses, and in turn funding. Always. Active secondary market coupled to the second largest mortgage originator. How much is warehoused and how much is bundled and sold? 3. Stock is half of its 52 week high. Bargain? Not necessarily, but it's already moved more than half of it maximum potential move from from 42 to 0. Every share is held. 4. New lending standards and rules? Now just WHAT would you know about lending standards? Compliance is nothing new. Could YOU distinguish between a doubtful and sub-standard loan? 5. Bank of America is demonstrating something. Hmmm.
To answer your last question first, and.........to use Longhorn's words, "obviously" positons are being taken for a transaction to occur. This isn't an asset play. Except............ that underlying collateral is indeed tangible and desirable (albeit location dependant). In a BK, more than likely a stock is cancelled. Period. A tad pre-mature to.........eh.............speculate. Many many local mom and pop marginal producers will fold long (get it) before one with economies of scale, connections, and name recognition. IF a BK is in the cards, given the days to cover, ax will milk that identified prey before it evaporates. Check out Nova's move off $5.