No offense John, but I took a quick look at MDCM and got a sick feeling. The chart looks similar to one that I already have. I recently bought FNCM around $1.50, because I thought it was so beaten down, that a technical rebound would be warranted. It stopped dead @$2 and is right back where I bought it, and it looks sicker than ever.
Increasing interest rates, slack demand for refinancing, and an overall lack of e-mortgaging demand, has these puppies in the dumps.
Now I'm sure MDCM doesn't have the same problems that FNCM has (namely a ridiculous float and bad management), so possibly the cash infusion will give them the boost you are looking for?? I hope it works out for you. I'd be lying if I said I thought MDCM was going to rock 'n' roll, because I'm not bullish on the sector, especially on-line mortgage companies. Really though, I hope the whole financial sector takes off with a great round of earnings numbers (many due this month for 1999), but somehow, I think there will still be pressure because of inflation and higher interest rates, going forward.
Regards,
B |
