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Great Ajax Corp T.AJX


Primary Symbol: AJX

Great Ajax Corp. is an externally managed real estate company. The Company’s primary business is acquiring, investing in and managing a portfolio of mortgage loans. The Company operates in a single segment focused on re-performing mortgages, and to a lesser extent non-performing mortgages and real property. The Company primarily targets acquisitions of re-performing loans (RPLs), which are residential mortgage loans and non-performing loans (NPLs), which are residential mortgages. It invests in single-family and smaller commercial properties directly either through a foreclosure event of a loan in its mortgage portfolio, or, less frequently, through a direct acquisition. It may acquire RPLs and NPLs either directly or in joint ventures with institutional accredited investors. It may also acquire or originate small balance commercial loans. Its manager is Thetis Asset Management LLC. It conducts its business through its operating partnership, Great Ajax Operating Partnership L.P.


NYSE:AJX - Post by User

Bullboard Posts
Post by dt_coreon Jan 10, 2014 5:48pm
342 Views
Post# 22080096

Bulls and Bears

Bulls and BearsI don't think I've ever seen a stock experience quite the pull from bottom-up bulls vs. top-down bears. Quite interesting to say the least and I will be very curious to see how results ultimately play out. I'm in the bull camp (very much so) and in for the long term based on my DD and view of the share price 2-3 years from now. Short term traders (mostly technical traders) are likely to get whipsawed with the daily price swings. So I expect this volatility and range bound trading to continue until either results are released OR a material press release is issued. The bear case: Farmer incomes are being negatively impacted by declining soft commodity prices. Equipment sales of heavy machinery are expected to decline between 5% and 10% in 2014. Farmers are notoriously conservative so will they shelve purchases of equipment in general. The bull case: Precision agriculture is now a must have vs. a nice to have. European demand in particular for precision agriculture is gaining tremendously (very good for AJX given CLAAS relationship). Lower grain prices will result in the marginal farmer looking to purchase value add technologies to improve operations (this is AJX's sweet spot). AJX has so much operating leverage that even a modest increase in sales will translate to exponential EPS growth. So net, net we have some big buyers and some big sellers. I think AJX Q4 and Q1 results will be scrutinized VERY carefully. Management has clearly communicated the bull case. They MUST deliver for the share price to march higher. And if they do, this stock will seem like a steal at current prices. Of course, the stock was a great buy at sub 70-80 cents. Too bad more investors weren't paying attention at that time, but for those of us that were it proves that proper due diligence will more often than not lead to sound investments.
Bullboard Posts