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Ready Capital Corp T.RC


Primary Symbol: RC Alternate Symbol(s):  RC.PR.C

Ready Capital Corporation is a multi-strategy real estate finance company that originates, acquires, finances and services small- to medium-sized balance commercial loans. Its segments include LMM Commercial Real Estate and Small Business Lending. The LMM Commercial Real Estate segment originates lower-to-middle-market commercial real estate (LMM) loans across the full life cycle of an LMM property including construction, bridge, stabilized and agency loan origination channels through its wholly owned subsidiary, ReadyCap Commercial, LLC. These originated loans are generally held-for-investment or placed into securitization structures. As part of this segment, it originates and services multi-family loan products under the Freddie Mac SBL program. The Small Business Lending segment acquires, originates and services owner-occupied loans guaranteed by the Small Business Administration (SBA) under its SBA Section 7(a) Program through its wholly owned subsidiary, ReadyCap Lending, LLC.


NYSE:RC - Post by User

Post by woolwichon Nov 03, 2016 2:16pm
141 Views
Post# 25421223

More to watch

More to watchQ4 results coming 17 November.  Concerned that gross revenue will not break out of its 10 year barrier and that cash/near-cash will remain the elephant in the living room.

RDM's management appears to achieve something of a miracle:  it essentially delivers profits employing only about  one quarter of the company's total assets.  The red flag for investors is that  the company's cash holdings, which have more than doubled since 2011 and which do not appear to be materially utilized in the firm's day-to-day business dealings,  now represent fully 75% of RDM's total assets and yet generate only a tiny contribution to income.   Over the last six years the average annual cash holding has equalled approximately $22 million and this has generated average income of only $72,000 annually. 

Gross margins on payment solutions activity now run to almost 70% but the return on 75% of the company's total assets is little better than .33%.  The company has shown itself to be a modest winner in a very competitive sector but it has yet to show  how it could be a champion if it engaged and maximized all of its resources.  Must wonder what it's going to take to get it there.
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