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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: a128 who wrote (27526)	7/31/2007 1:54:55 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78741

CBF: I'm holding for the same reasons.

To: a128 who wrote (27526)	8/1/2007 11:48:49 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78741

regarding CBF - i think it's a crabshot. roughly 400M$ equity and 1.4B$ debt. If their loans loose 20% of their value they are toast. Are their loans healthy? We do not know. Commercial RE as a group is not doing too bad right now, so i would assume that they are not in the residential mortgage swamp. On the other hand the risk premiums for almost all riskier loans have been at all all time low and are going up now, so it seems that the market market value of their assets would go down somewhat. Also their earnings have been down YoY by 75% 9a mere 5x last quarter). We also have recent management departures, the recent Wachovia loan restrive loan extension as negatives I see in their 10Q that they made loans with Loan to value ratios from 67% to 77% which does not sound too bad. From their 10Q it does not sound like a belly up situation unless there are skeletons in the basement that we do not know about. i do not see how this company is supposed to make money based on the interest rate spreads they are earning (1.5-2%) for loans of above average risk. if that's all they can do they should liquidate, IMO.