I was going to post about the class action, which, ironically, may have been responsible for CMO getting trashed further this PM - what a gift from the lawyers!
The key to what you said is "a little bit". I would bet that, if the action(s) was (were) successful, shareholders would realize pennies/share - no windfall there. The lawyers would be the real winners. So, I would suggest that people be careful entering one of these actions. I know I will. Lawyers really have THEIR best interests in mind, not yours!
In addition, the actions would further distract mgmt. from turning the company around.
Believe me, I'm not defending the actions and words of Ronny boy and his gang. They made a big a%$ bet on rising interest rates, after assuring everyone in statements that they position the company to perform relatively well in a variety of interest rate environments.
Mortgage servicing, ARMS, both do poorly in a declining interest rate environment. Mgmt. said, well, let's be heroes and buy a ton of IOs, which perform well with rising rates, poorly with declining rates: no hedge there! Casino Royale!
Anyway, we'll see what kind of a "gift" Ronny will present us with his earnings announcement tomorrow. |
