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

To: Deeber who wrote (26112)	12/11/1998 8:37:00 AM
From: Jules	Respond to of 119973

Take a look at MICA..earnings beat estimates...

To: Deeber who wrote (26112)	12/11/1998 8:37:00 AM
From: JustInTime	Respond to of 119973

>>FP, I follow it, got upgraded yesterday from Bankrupt to Sucks. EOM Good one, LOL!

To: Deeber who wrote (26112)	12/11/1998 8:54:00 AM
From: Fitz	Respond to of 119973

Deeber This is a post on CD board, someone make a copy post it on FP Yahoo. I think it's good to share. Benkea OFF TOPIC RE FP by: Congobuster 36013 of 36073 Those are really not the issues for a mortgage company like FP. The primary buisness of FP is equity lending <home improvement loans..debt consolidations ect..> and not conventional lending.Conventional lending is what is mostly impacted by Refinancing, which will be severly slacking off. <hence my concern about CD as well as Cendant mortgage is very vulnerable to that> The issues facing FP is very unique. Business is great. The problems are when they make loans..they securitize them..and sell off the securities. Hedge funds were the primary buyers. When the problems hit the hedge funds..and the spreads widened.. suddenly FP had warehouses full of unprofitable loans. They kept filling there warehouse lines to capacity..with no way to sell them. Thats why this crisis in this industry happened so fast. There was NO way for anyone to gauge it. Other companies were folding overnight. They had to. They had No money to loan. What FP did was this..they reached an agreement with Coast to Coast Financial..one of whose division is superior bank. Coast to Coast is a privatley held company owned by the Pritzger family..a memeber of the Forbes 400..<translate that into he's loaded> The deal they reached was this. FP gave them warrants at 4 5/8 that will probably dilute earnings I estimate by 40% from the companies previous earnings. Even with that dilution..over a relatively decent time span the stock could get back to 15 to 20 a share. The other part of the deal is Superior and FP will..going ahead work together to securitize loans in a joint venture. And lastly..Superior is buying Fp's servicing for 75 million..and just bought some FP B&C paper for 28 million. All this equals liquidity for FP..which was really there only problem. Fp has also just layed off 3000 people and drastically cut costs. The stock has been down on concerns the C2C and FP deal wont happen..but as of now that seems very unfounded. The deal makes sense for both of them..and i cant see why Superior wouldnt want to buy the serviving for 75 mil. Its a good deal all around. Within the last week..the President of one of superiors divisions said the deal was still on and was fine. This news did not hit the wires..but was in a mortgage publication I get. Today..FP was upgraded to buy by Montgomery..and the analyst said he sees a high probabilty this deal will happen thats why he upgraded it. As a matter of disclosure to this board..I am in this stock at 2 and at 2 3/4. It is up ALOT today. But..in a very lousy market it is leading the NYSE gainers list right now.That may get it some more attention. If anyone were to enter it..I would be sure to allow for averaging and some pullback. With that said though..the stock is down from the fiftys to the threes..and it really looks like they are addressing the problems..and the stock..if all goes as planned..should have some very nice upside. As in any stock..I NEVER recommend betting the farm on it. If this C2C deal doesnt happen...Bankruptcy is a real possibility. But..with EVERYTHING I can see today..i give it a 75% chance of success..and at this price level..that makes it very worth it to me.