I've read comparisons on the Yahoo board comparing CNC with FPFG and CTYS, one of which is going through BK, and the other one is BK.
CNC is an entirely different company than FirstPlus or CityScape. First, the 125% loan business is only a part of the Finance Group's business; they make other loans as well. Of course, CNC is much more than specialty finance, and the other businesses appear to be doing quite well.
As far as liquidity goes, CNC continues to have positive cash flow, versus the negative cash flow FPFG and CTYS were experiencing when the credit markets dried up for 125% loans.
I agree that CNC paid too much for GT, and the uncertainty surrounding the sale hangs over the stock. However, I believe CNC will receive much more than "chump change" for GT, and once that cloud is removed CNC will go back up to at least $20/share, probably $30 - 40 in a year or two.
Of course, the Street lacks confidence in Hilbert now, so it would be better if he left the scene. |
