INVESTMENT PROFILE - MORTGAGE BANKERS HOLDING CORP.
OTC:MBHC
Industry: Banking/Finance Stage: High Growth
STOCK OVERVIEW:
Shares Outstanding: 5,000,000 (as of 10-15-97)
Fiscal Year End: December 31
Total Assets: $20.1 Million
COMPANY OVERVIEW:
Mortgage Bankers Holding Corp. is a diversified technology based financial services company, which through its subsidiaries, Mortgage Bankers Service Corp., Pinnacle Insurance and Investment Group, Inc., and Commonwealth Capital Investment Corporation, utilizes data transfer and exchange to offer a full spectrum of financial and asset management services and products. MBHC operates primarily in the mid-Atlantic region and provides wholesale and retail lending for residential and commercial mortgages, full service insurance and investment services, as well as equity investments and development loans. Some of MBHC's current customers purchasing loans include: Chase/Chemical Bank, Accu Bank, Crusader Bank, Dellwood Savings Bank, Federal Capital Funding, Fleet, Ford Credit and Mellon Mortgage. MBHC's insurance subsidiary is licensed with A++ rated companies such as: Jefferson Pilot, TransAmerica, Penn Mutual, MetLife, Putnam, American Funds, Allstate Insurance Co. and United American. MBHC's products are retailed directly and wholesaled through a network of bankers licensed with the Department of Banking and the Insurance Commission. Based on the success of sub-prime wholesale sales, MBHC is preparing to launch its national expansion to over 600 locations nationwide. Strategic alliances with remodeling and home building companies are currently underway to expand into new markets. MBHC plans to further its growth through strategic expansion and acquisitions of small to mid-size insurance agencies and licensed mortgage companies.
INVESTMENT HIGHLIGHTS:
* Sub-prime lending market ($15 billion + annually)
* Senior Life Insurance ($10 billion + annually)
* Revenues based on homeownership (equity positions stable)
* Rapid expansion in wholesale lending will drive sales in emerging markets
* Profitability on mortgage backed securitization provides favorable P/E for shareholders
FINANCIAL HIGHLIGHTS:
Revenues: 1998 E - $2.5 million 1999 E - $6.0 million
Earnings per share: 1998 E - $0.08 1999 E - $0.19
Annual growth for 1998 is expected at 60%, 1999 at 41%, and 2000 at 30% respectfully. Gross profit margin on an average of 72%E, operating profit margin 30.7%E, net profit margin @ 21.1%E, return on equity is anticipated @ 23.5% average estimate. |
