Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : MFN Mercury Finance -- Ignore unavailable to you. Want to Upgrade?

To: NormanD who wrote (1119)	3/30/1998 2:36:00 AM
From: DanZ	Read Replies (1) \| Respond to of 1239

All, Here is a link to the Chicago Tribune article in case you want to read it from the source. The blurb on MFN is way at the bottom of the page. chicago.tribune.com Just in case you don't have America Online, it might be worth your time to read the following post from the MFN thread on AOL. The writer, Bankfund, has been bearish on MFN for quite some time although he claims to have no short position in the stock. He manages a hedge fund and seems to be knowledgeable about the banking industry. I have no opinion on Bankfund's claims but it's probably a good idea to read all you can about a stock that you own, even negative opinions. It's generally not a good idea to ignore what might be reality or get defensive just because somebody posts negative comments although what Bankfund wrote might not be reality either. Needless to say, the other folks don't like Bankfund too much. I posted some negative comments there last month and was accused of trying to manipulate the stock down so I could buy it cheaper. LOL give me a break! _________ Subject: Re: Something up!!! Date: 3/28/98 12:47 PM Central Standard Time From: BANKFUND Message-id: <1998032818472600.NAA05769@ladder01.news.aol.com> Just perused 10K quickly, now I know why lenders haven't forced BK. The senior and sub debt and comm paper are not secured by any loan or other assets!! The lenders are in a box, so they are just letting MFN slowly liquidate to get their money back (plus 9% default int rate). The terms are short enough and the amortization is quick enough that the lenders are better off waiting. Thats the good news. The bad news is that there is no realistic hope of MFN getting financing any time in my lifetime. No one in their right mind would finance MFN now. The lawsuits will drag on for years, Brandt and his co will collect a big fee for "saving" MFN, the existing lenders will eventually get back all their money thru slow liquidation, the balance sheet will get smaller and smaller and MFNs equity holders will see no return unless the auto finance market does a remarkable turnaround. There is very little book value left, and there is no big unrecognized tax benefit off B/S. There is nothing pretty about a finance company in liquidation, its just a matter of time. Any equity left after the next year or two will get eaten up by oper expenses (espec legal). Anyone looking for $2.00++/share is deluded. I thought it would go down quicker, but the result will be the same. This is a day trade stock only. It will be $.50/share or lower within the next few months. Play the bounces if you have the time and energy.