After reading the 2q2007 balance sheet, I noted that owner's equity has been slashed from 1,356,806,000 as if Dec 31, 2005 to 281,940,000 as of June 30, 2007.
Originally, I thought only half the owners equity would be wiped out. I UNDERESTIMATED. The write down of the residential real estate portfolio, along with other write offs were much larger then I estimated. To put it context, FMT took 5 years to add a billion dollars to owners equity, and 1 1/2 years to lose a bit over that amount.
FMT management has a lot of explaining to do at the upcoming shareholders meeting to employees, managers, and shareholders.
I still own the FMT pfd stock, and will continue to hold.
Carey Thompson |
