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

To: Wallace Rivers who wrote (3441)	3/4/1998 9:49:00 AM
From: Honest Abe	Read Replies (1) \| Respond to of 78627

I have only briefly looked at MON vs. REMI, but my impression is that MON deals with niche lending opportunities that involve higher interest rates (currently they are primarily into home equity loans). From their commercials, I believe they are helping people consolidate their higher-rate debt (credit cards, etc.) and pay it off with a lower home equity loan. REMI simply packages mortgages up and sells most of them to Fannie Mae, etc. In dealing with these other companies, it seems to me to be a much lower risk strategy, and since they are not taking on the credit risk that MON is, I would assume their margins are much smaller. So, yes, same business, but one seems rather conservative and one rather aggressive. That should explain the differences in their ratios. Not trying to say if one or both are a good value, though. No opinion there.

To: Wallace Rivers who wrote (3441)	3/6/1998 12:16:00 AM
From: Shane M	Read Replies (2) \| Respond to of 78627

Wallace, I am a shareholder of The Money Store, and am looking into a new place to move some of my money. My database says that REMI is experiencing growth in its subprime division (where MON specializes). Revenue growth for REMI seems comparable to MON. One concern: The sub-prime lenders such as MON have gone through a shakeout, with many restating financials (consider Green Tree) and increasing loss reserves. This in turn leads to lowered debt ratings which lowers their margins. It's difficult for me to assess the quality of loans that a company has on it's books, but if REMI is following conservative accounting I'm certainly interested. I will look into this stock as time permits. Shane