Mortgage.com sees 65% sales boom
Newly public firm's market value doubles in 2 days
By Debra McGarry, CBS MarketWatch
Last Update: 12:47 PM ET Aug 26, 1999 Also: NewsWatch
PLANTATION, Fla. (CBS.MW) -- Mortgage.com shares advanced again Thursday afternoon as investors lauded the online mortgage services provider's 65 percent boom in second-quarter sales.
Shares rose 3 3/8 to 18 3/4 on massive volume of 7.8 million, and at one point in morning action rose as high as 22 3/4. Taken with the stock's 88 percent leap in the previous session, the newly public Florida company's market value has doubled in only two days.
On Wednesday, one factor in the stock's favor was the belief that the Fed's 25 basis-point rate hike earlier this week may benefit a company that promises to cut costs typically associated with mortgage loans.
Meanwhile, Mortgage.com said revenue for the quarter hit $14.3 million from $8.6 million last year.
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8/26/99 12:08:58 PM ET
"The company's growth during a period of rising interest rates reflects Mortgage.com's unique business-to-business strategy and its focus on the home purchase-money financing market," the company said in a statement.
The company posted a net loss of $8.6 million, or $1 a share, in the second quarter, compared with a loss of $763,000, or 14 cents, in the year-ago quarter.
Excluding amortization of stock-based compensation, the loss came in at $7.7 million, or 91 cents a share.
No estimates were available from First Call.
Sixty-five percent of Mortgage.com's funded loan volume in the second quarter was related to purchase-money mortgages, the company said.
The purchase-money mortgage market is considerably less sensitive to interest rate fluctuations than the re-finance mortgage market.
The Internet mortgage company is in a post-IPO quiet period until next month. On Aug. 11, the stock (MDCM: news, msgs) soared 44 percent in its stock-market debut at an $8 offering price. See IPO Report.
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