Post by
DayOfReckoning on Jun 19, 2014 12:39pm
My opinion on the SP...
I believe there were 3 reasons for most of the price weakness of the past 9 months:
1. Interest rates falling again over that time period. Street needs higher rates to get better spreads. No coincidence that the run to $3 was fueled by rates rising last spring.
2. Competition for new originations heating up evident in the last reporting period.
3. Poor handling of the Heritage dividend.
I still think $2.25-2.50 is FV for the company, and the banking license will only enhance this.