Comments on: NDE: IndyMac Bank Still Feeling Mortgage Pain

By: Tom Allen

Tom Allen — Sat, 14 Jul 2007 18:11:27 +0000

Because of the profit levels involved it’s always going to be a somewhat predatory industry. The business of money can be so lucrative that sharp practices are almost inevitable. The really hard sell that has been going on in the sub-prime market over the last few years was always going to have some fairly serious ramifications.

I run a mortgage site and I always try to point out the potential pitfalls to people but the desire to own a home can be an overwhelming one and I think a correction in the market (particularly in the sub-prime sector) was always inevitable.

By: NDE: IndyMac Bank Says Don’t Call Us a Subprime Lender - Stock Market Beat - Our beat is the stock market. Our job is to beat it.

Thu, 15 Mar 2007 13:11:50 +0000

[...] 3. We do not rank among the top 25 subprime lenders in the country in any current industry survey, nor are we part of the ABX Index of the top 20 subprime issuers. 4. Subprime mortgages generally include those loans where the borrower’s FICO score is 620 or below. In contrast the averageFICO score on Indymac’s 2006 loan production was 701. Of course, one can forgive the confusion with the shares down by a third since the beginning of the year and the company having to frequently cut its guidance, as we reported two weeks ago: According to an Associated Press article: In January, the company forecast 2007 earnings at about $4.15 per share. At the time Wall Street was looking for profit of more than $5 per share, but analysts have since revised their estimates and now expect, on average, profit of $4.32 per share. [...]

By: Trent

Trent — Sun, 04 Mar 2007 23:38:55 +0000

Good point. It will be interesting both to see whether they go through with it and how much they end up paying.

By: Gerald R. Lampton

Gerald R. Lampton — Sun, 04 Mar 2007 22:33:20 +0000

It would be interesting to know where the $300m share buyback announced in January stands and what impact that will have on per share earnings.

Now that the stock is totally trashed, they should be able to really get their money’s worth.

They are presenting at two investor conferences on March 7. FWIIW, I predict a pop in the stock price after those events.