Google
 
Web Invest4today.blogspot.com

Wednesday, August 01, 2007

So Much For American Home Mortgage (AHM)

In March I believed that American Home Mortgage (AHM) was safe from the subprime fallout and I wrote positively about the stock on March 18th. I wouldn't touch the stock now. I did say to realize profits on March 21st. I admit I was wrong about AHM and in today's current environment I wouldn't touch any stock that has a residential mortgage unit.

Some Stocks to Avoid
  • Annaly Mortgage (NLY)
  • Countrywide (CFC)
  • Freemont General (FMT)
  • Impac Mortgage Holdings (IMH)
  • NovaStar (NFI)
  • Redwood Trust (RWT)
  • Thornburg Mortgage (TMA)
  • Wells Fargo (WFC)
Note: I have no position in any of the above stocks.

18 Comments:

Blogger Peter said...

You can add Accredited Home Lenders Holding Co. (LEND) to the list.

8/02/2007 8:33 AM  
Blogger Larry said...

Just bought LUM at 6.50 Friday [First purchase -- and I'm not affiliated.] From their 7/30/2007 Press Release:
Luminent Mortgage Capital, Inc. Confirms Second Quarter Dividend Payment of $0.32 per Share Secure, Full Compliance With All Financial Covenants, and Ample Liquidity. Luminent Mortgage Capital announced today that its second quarter dividend payment of $0.32 per share, payable to stockholders on August 8, 2007, is secure and will not be canceled.
In addition, Luminent confirmed that as of July 30, 2007 it is in full compliance with all its financial covenants. Furthermore, Luminent confirmed that as of July 30, 2007 it had ample liquidity to manage its business.
Luminent reiterated that it is an investor in, and not an originator of, mortgage loans. As such, Luminent is not subject to the loan repurchase risk that is currently impacting certain loan originators. Instead, Luminent purchases high quality mortgage loans from originators, and only after Luminent conducts exhaustive due diligence on each and every loan. As of June 30, 2007, Luminent's 15,327 of whole loans had a weighted-average FICO score of 715, a weighted-average loan-to-value ratio net of mortgage insurance of 71%, and 86.4% of these loans were on owner-occupied properties.
In addition, Luminent reiterated that it employs a disciplined and sophisticated hedging program for the interest rate and credit risks in its portfolio using Eurodollar futures, interest rate swaps, swaptions, interest rate caps, and by shorting various portions of the ABX indices as well as employing single-name credit default swaps. During the quarter ended June 30, 2007, the strong performance of Luminent's credit hedges more than offset the income statement and balance sheet impact of mark-to-market pricing and certain impairment charges related to its credit sensitive assets. This strong performance of Luminent's disciplined hedging program was one of the contributors to the increase in Luminent's book value per share to $10.05 as of June 30, 2007.

8/04/2007 10:41 AM  
Blogger Yannick said...

Yup AHM is really a fiasco. I had bought some a bit before your initial recommendation. I was pretty enthusiastic at the moment as the mortgage held by the company were 'merely' Alt-A which was considered safer, although its stock got beaten as if it was a subprime lender. Unfortunately I didn't sell when you recommended to take a profit. I was able to limit the pain by exiting the stock when I read that even Alt-A mortgage defaults were on the rise and credit deteriorating, leaving M&T Bank with problems 'refurbising' its mortgages on the market. With the dividend at the time I was pretty much break even.

Now I decided to leave the mortgage business aside and instead bought some AXP friday on the dip. American Express is still posting excellent results amid the current credit crisis. I believe its clients have a better credit score and the company should not be heavily impacted. Of course I will follow the thing careful, as I did with AHM :-)

8/04/2007 12:31 PM  
Blogger Yannick said...

One last thing, I was very shocked to see AHM go bankrupt just a couple of weeks after the CEO bought shares of the company himself for around 24$ each if I recall correctly. That is very scary to me as it means that even the CEO of a company is not always able to understand the risks of his own business. Go figure.

8/04/2007 12:35 PM  
Blogger paulo felipe said...

The nearby beaches of Arrifana and Amoreira have excellent restaurants overlooking the spectacular beaches which abound on this dramatic western coast. Espartal is a paradise for those who enjoy the outdoors – whether this be walking, mountain biking, running, surfing or just chilling out. The beaches are spectacular, the hills offer a maze of tracks to explore amazing scenery, which, located in a protected national park, offers an impressive array of flora and wildlife.



I expect from your company, someone whom with the experience and knowledge will to start partnership to do the first hotel in that area. Thus, I need to know, what terms you doing the joint venture.

so, in follow attachment, send to you the main location( Portugal, Algarve) and project.

please feel free to contact me for further information

thanks

Paulo

pfelmar@gmail.com

8/04/2007 11:56 PM  
Blogger JJ2000426 said...

You know who SOLD OUT a piece of national treasure vital to our survival, to Russians, dirt cheap?

Watch out SWC on monday for earnings release after hour. Crooks knocked down SWC from $16.47 to $8.56 in less than 3 months, for no good reason. Maybe they want to sell the remainder to Russians cheap?

Deeply oversold, I expect a blowout SWC quarterly earning, and from here SWC MUST have a dramatic reversal and a great rally on the good earnings. Don't let go of the opportunity!

8/05/2007 8:42 AM  
Blogger Layla said...

Mortgages help a lot in buying houses, even if your credit history is not so good. From my expirience I can say that bad credit mortgage helped me a lot. I wanted to buy home, but my credit history was not so good. I had limited income and insufficient savings, and buying home was for me like a distant dream as it required a good amount of money. And bad credit mortgage not only helped me to buy home but also provided great opportunity to re-establish my adverse credit past.

11/09/2007 3:55 AM  
Blogger parlakawong said...

Hello ,I liked your blog.Besides,the arrangement of contents are easy to look up and good information.

2/13/2008 5:50 AM  
Blogger Richard said...

Great post,

I have learned many useful resources from your blog. Thanks for sharing this info and hope to read more from you.

A mortgage is a sum of money borrowed from a bank, building society or other lenders in order to buy a property. The mortgage is then repaid over time, together with added interest. There are many different types of home loans – including fixed, discounted and even offset mortgages – which is why an apparently cheap mortgage deal may not always be best for your needs.

LiveMortgageFree

3/04/2008 9:57 PM  
Blogger marisa said...

Excellent post. I like such themes and anything connected to this matter. I definitely want to read more on that blog soon.Thanks for sharing with us ...



interest

9/04/2010 2:52 AM  
Blogger franky said...

Very interesting. I had seen it many times yet not felt the urge to blog on it. When you blogged, it made interesting reading.
China flights,
Manila flights,
Hong Kong flights,

7/15/2011 1:31 AM  
Blogger Sunny Jonson said...

I had no trouble navigating through all the tabs as well as related info. The site ended up being truly simple to access. Intraday Nifty Future Tips

1/31/2013 1:27 AM  
Blogger jack jonson said...

It’s really a nice and useful piece of info. I’m satisfied that you simply shared this useful info with us. Please stay us up to date like this. Thanks for sharing.
Commodity tips
Stock Market
Share Market
Nse Tips
Bse Tips

2/05/2013 10:58 PM  
Blogger Alex Jonson said...

Wow, awesome blog layout! How long have you been blogging for? you make blogging look easy. The overall look of your website is great, let alone the content!
Ncdex Tips || Indian Stock Market || Bullion Tips || Nifty Future Tips || Nifty Option Tips || Future Tips

2/07/2013 12:09 AM  
Blogger John Cruse said...

A good informative post that you have shared and thankful your work for sharing the information. Got some appealing information and would like to give it a try. Applaud your work and keep sharing your information.Really impressed! Everything is very open and very clear clarification of issues. Call Option || Option Tips || Stock Option Tips || Options || Nifty Options

2/07/2013 10:12 PM  
Blogger Sunny Jonson said...

This is a great post ! it was very informative. I look forward in reading more of your work.
Share market tips
Share and Earn

2/15/2013 2:52 AM  
Blogger Commodity Tips | Stock MarketTips said...

This is my first visit to your blog.Your blog provided very important information to work on.I wanted to thank you for this special read.
share market
stock market
Indian Stock Market Tips

2/19/2013 8:16 PM  
Blogger property mash said...

I like concept of your post. Very creative post. Best of luck and waiting for some new ideas. I am looking for such useful information and I found here a lot of it.
Buy Property
Sell Property
Invest in Property
Find real estate agent

2/20/2013 2:09 AM  

Post a Comment

<< Home