This is a company I don't understand. It seems like they could either be in deep shit, or poorly understood. If they sink, they take the boss who's a major shareholder which is a rare thing. Maybe he's a bad boss? He seemed to come in when the price was about this level. They had some good things going, but expanded too fast.
Now, they have trouble getting their loans securitized. This could be a great problem. They say they want a better deal and they've got the cash to hold the paper and wait for it.
They also are getting out of Mortgage Servicing. This is suppose to be a good business, but they are facing a wave of refinancing if interest rates keep falling. It's sot of another failure, but maybe a wise move if they can sell the portfolio now before all the value is gone?
In the end, I keep coming back to the issue of short interest against WFSI. 1,120,541 That's a lot of days trading to cover with little liquidity. Then, they plan a 500,000 share buy back. How much lower can it go before shorts cover? They are at or below book now.
So, there seems to be a strong feeling that this company could go down much further. The problems are deep. But, I don't know what they are.
Regards,
Mark |
