Downey Financial Corp. (DSL)

olenoides (98.70) Submitted: 10/08/07 1:05 AM : Start Price: $58.73 DSL Score: 76.81

Investment portfolio loaded with Option ARMS 85%+ of which are in California, on the the epicenters of the real estate meltdown. In August their non performing assets on their portfolio was 1.96% up from .32% only a year ago. The current trend over the last several months puts their NPA's at almost 3% at years end.





In August their interest rate spread was 2.95% and with 1.96% NPA's that probably means they are loosing money and it's only going to get worse. NPA's are only going to get worse and interest rate spread is not going to get better either.





They've also booked a huge amount of neg. am income and have lowered loan loss reserves to make their earnings look better than they are in the last two quarters.





Plain and simple they are a DEAD bank, it's only a matter of time. Unfortunatly this stock is also a playground for hedge funds, but once people start bailing it's gonna tank fast.

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