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Microcap & Penny Stocks : PanAmerican BanCorp (PABN) -- Ignore unavailable to you. Want to Upgrade?

To: Gordon Gekko who wrote (10329)	8/4/1998 2:07:00 PM
From: Doug T.	Read Replies (1) \| Respond to of 43774

100% buys the last hour! <eom>

To: Gordon Gekko who wrote (10329)	8/4/1998 2:12:00 PM
From: Buster	Read Replies (1) \| Respond to of 43774

Gordon, Someone on the PanAmerica Bancorp brought this up. When you go to this link sos.state.nv.us and type in Realty Money Center it says that they were incorporated on March 12, 1998. I'm pretty sure someone on the other thread said that Realty Money Center is an offshoot from some other company. When they split with ? to form Realty Money Center did they take all their Mortgage business with them or are they competing with the other company? I do not know how accurate this information is but would like to hear from somebody who is more informed. thanks Buster

To: Gordon Gekko who wrote (10329)	8/4/1998 3:10:00 PM
From: Alastair McIntosh	Read Replies (1) \| Respond to of 43774

GG - I checked the Mortgage Bankers website and found this article regarding profitability. You may be a bit high in your estimates of the profits from mortgage banking. I was unable to find anything on 1997 profitability. mbaa.org WASHINGTON, D.C. -- The Mortgage Bankers Association of America (MBA) today announced the results of a comprehensive study conducted among 213 mortgage banking companies to determine income and costs for originating and servicing one-to-four unit residential loans in 1996. The 1996 Cost Study shows that the average industry firm had a profit margin (net income divided by gross income) of 12.3 percent, up from 9.9 percent in 1995. Net operating margin (profit margin before sale of servicing) was 9.6 percent in 1996, up from 5.7 percent in 1995. "While the relatively strong core earnings of the average mortgage company marks the second straight year of recovery, it disguises the fact that there were some big winners along with those companies who didn't fare so well," said David Lereah, MBA's chief economist. "The bottom line is that we are still in a fiercely competitive environment which means we are likely to see more consolidation and exits from the industry." Key highlights of the 1996 Cost Study include: For the second consecutive year firms servicing between $1 billion and $3.9 billion were the most profitable servicer size group with an average profit margin of 25.9 percent and an average net operating margin of 23.5 percent in 1996. Servicing productivity jumped to 1,134 loans serviced per servicing employee in 1996 from 796 in 1995. This increase was driven by average servicing portfolio growth, continued efficiency improvements from application of technology, increased subservicing activity, and the growth of second mortgage servicing activity. The average firm serviced 947 first mortgages per employee in 1996 compared to 700 in 1995. The average firm serviced 86,721 first mortgage loans in 1996 in addition to 9,703 second, construction, and other loans secured by single-family properties. Direct cost of servicing a loan fell to $85 in 1996 from $100 in 1995. The largest servicers, firms servicing over $20 billion, incurred $81 in direct cost per loan serviced making them the most efficient size group. Servicers with $4 billion to $20 billion reported a direct cost of $85 per loan serviced. The average firm in the sample reported that a 47 percent share of its loan production volume came from purchased production in 1996, up from 43 percent in 1995 and the highest share ever reported. The average firm incurred a net loss of $913 per loan originated in 1996, down from $983 a year earlier. The majority of the loss was recovered through net marketing income which averaged $664 per loan in 1996, up from $433 per loan in 1995. Net marketing is expected to continue increasing now that FAS 125 is in effect. The 1996 Cost Study is available for purchase from the MBA Economics Department at 202-861-6995. *SPECIAL NOTE* The 1996 Cost Study includes 213 mortgage banking companies that originated nearly 70 percent of all mortgage banking company one-to-four unit residential loan volume and over 40 percent of total industry volume in 1996. The sample firms also service more than 87 percent of the loans serviced by mortgage banking companies and more than 43 percent of all single-family loan volume outstanding. The 1996 Cost Study reports pre-tax and pre-FAS 91 results on single-family business only. Al

To: Gordon Gekko who wrote (10329)	8/4/1998 7:45:00 PM
From: ISOMAN	Read Replies (3) \| Respond to of 43774

Isoman, Revised Earnings Estimate I think there maybe a problem with your earnings estimates. Let's look at them one by one. Real Money Center 400 million a year in mortgage closings (this is not revenues or earnings) Revenue is 3% X $400M = $12M Belize mortgage business $120M mortgage closings (this is high, they will not close $10M a month) 5% signing fee $6M 2% maintenance fee $2.4M Costa Rica potential $120M in mortgage closings (we know there are much more - $600M potential) 5% signing fee $6M 2% maintenance $2.4M IT estimate as per news release $18M( we know this is low, closer to $65M) Revenue = $18M Total REVENUE = $46.8M Total EARNINGS = $11.7M (using 25% as net earnings margin) EPS = $0.019 P/E Multiples 10X = $0.19 20X = $0.38 30X = $0.58 I believe the S&P runs about a P/E of 20. The $10M a month for Belize looks shaky because they don't have that many homes. Who knows when Costa Rica will start, but it seems to have a much larger potential. The IT estimate is obviously low assuming they market it properly. Lastly, Real Money seems plausible. Other acquisitions? Who knows what they will bring in? There is no question that we are undervalued, but it will take regular earnings reports to bring this stock up to it's true value. Comments? GG Ok, You said, that Belize will most likely not do 10 million in mortgages a month. You could be right, you could be wrong. What we know, is that they will write some mortgages, and it should continue for quite some time. for now let's leve the estimates as above. Costa Rica. You said my estimate was low, and probably closer to 600 million in mortgages. I agree again, but I kept the estimate low, to offset any deficiency in both countries (Belize, and costa) Real Money. I know 400 million is not earnings. The going rate for mortgage business in vegas ranges fro 2% to 10% of the mortgage, depending on the complexity. I took 3% as a low average. 400 million X 3% is 12 million (I did put that down so we agree here) IT estimate for sales on the press release was 18 million( You said it probably would be higher.) I agree, but...I like to err on the side of caution so I put 18 million as the estimate, with 25% as NET earnings. so...if you ad 12 million (Real money gross commisions) 8.4 million (Belize) 8.4 million (Costa Rica) 18 million (Gross sales, IT) Total Gross sales = 46.8 million 46.8 million divided by 610 million shares = 7.6 cents per share gross sales. Now I don't know what the profit margin is for a bancorp. I know of a credit union in Toronto , that is similar, sort of, only that it' s business is strictly in Ontario, and they don't have the Trading company, but they boast a net profit of 42%. So let's keep the net earnings down to 25% of gross, shall we. or 1.9 cents per share. ALL AGREED? of course, as more details come in, we'll be able to narrow this down more. Pink Pig, isn't a huge expense for PanAmerican, but I can see it generating a lot of interest (The websites, that is)