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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: DebtBomb who wrote (5708)	10/8/1998 1:11:00 AM
From: NASDBULL	Read Replies (1) \| Respond to of 119973

I thought for sure we would rally this morning with the Nikkei up 800 points. I had GCTY, got out this morning before crash to 16 at $18.50. I then shorted PVN at $60.30 after a hunch from Mr. Pink. Stock is at $53 now. This is another stock similar to FP, but has a price/book of 10 and a price/sales of 10. This specialty finance company will dump to 20's. Check out some of what they do. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<< Home Loan Products The Company's home loan products ("Home Loan Products") consist primarily of home equity lines of credit, which are offered to targeted individuals in 26 states through direct mail and telemarketing. At December 31, 1997, the Company had $1,063 million of managed home loans outstanding (of which $563 million were on-balance sheet). The Company's strategy for Home Loan Products is to target homeowners with significant debt, and to offer them a home equity line of credit for debt consolidation and cost savings through a lower interest rate and tax advantages. By taking a security interest in the customer's home, the Company can offer an attractive opportunity to customers who might otherwise be unable to achieve debt consolidation, while managing risk in a manner the Company considers prudent. Many of the skills employed to execute this strategy for Home Loan Products were originally developed for Unsecured Spread Products. These skills, including database marketing, customer targeting and risk management, have been adapted by the Company specifically for home equity lending. In executing its Home Loan Product strategy, the Company focuses on the following principles: (i) evaluating the borrower's credit history in addition to the value of the real estate which secures the loan; (ii) marketing through direct mail, which allows both customer and regional selectivity and allows the Company to react quickly to local economic and real estate market changes; (iii) utilizing a two-step process of lead 6 generation and lead conversion with a universal offer and customization at the back end; and (iv) establishing primary lender relationships by successfully targeting borrowers and consolidating debt. The Company offers home equity lines of credit with higher loan-to-value ratios, which may exceed 100%, when the Company considers it warranted based on the customer's credit quality and other factors. Home equity lines of credit are currently structured as 15-year loans, with a 10-year revolving period followed by a five-year amortization. Interest rates on the Company's home equity lines of credit are generally variable and are indexed to the prime rate. Credit lines, loan-to-value ratios and interest rates (the spread above the prime rate) are determined by collateral and credit quality levels. For certain customers, the Company has also offered fixed rate, amortizing mortgage loans, primarily as a part of its customer retention strategy. However, the Company may offer increased numbers of fixed rate, amortizing mortgage loans in the future.