FirstFed Financial Corp. (NASDAQOTH:FFEDQ)
The Company's principal business is attracting checking and savings deposits from the general public and using such deposits, together with borrowings and other funds, to make real estate, business and consumer loans.
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worst 30days caps
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this company is turning the corner faster than the shorts think
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Not the only FED that's doing a bad job.......................
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Purely speculitive, hoping it will not go under and will eventualy rebound with the real estate market. Did not do much research on this one so hoping they have decent managment to survive the storm.
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I am listening to others knowledge here. What I read is that it will be down for a while longer.
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Will underperform for the next 2 - 4 years:
(a) Declining deposit base.
(b) Increasing non-accrual loans.
(c) Too under reserved for non-accruals (look for the bank to continue increasing its reserves).
(d) High employee turnover.
(e) Highly concentrated loan portfolio (majority of loans in S. California market).
(f) Asset growth increased from approximately $4.9 billion in 2004 to over $10 billion in 2007 (most of that asset growth was during the peak of this real estate cycle so the bank has very little, if any, equity cushion on loans originated during this period).
(g) Poor sr. mgmt (namely CEO and President) - too focused on squeezing dimes from the cost structure at the expense of employee welfare and customer service.
(h) Recently moved headquarters out of the city that the bank was founded (Santa Monica).
(j) Had to raise $150 million on debentures to fund growth & continues to use the FHLB loans as it can't raise deposits (think poor customer service).
(k) Purchased over 1 million of its common stock through a buy-back program at an avg price of $48 (stock won't see that level again for at least the next 10 years - waste of investor capital)
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NO way it will outperform
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Riding this one down to zero as the large institutional players slowly make their way to the exits.
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follow the trend...
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What a joke! While not exposed much in sub-prime, they are fully to Alt-A loans and option arms-in California!
Case closed!
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As of close of business on 2/20/08, this was a 5-star Morningstar stock trading at less than half of its Morningstar fair value.
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The option ARM loans will continue to really hurt them. Mortgage write downs for the next several months.
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See DSL
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Forbes Makers+Breakers
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Well run, solid financial caught in industry downturn
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Only thing holding these jokers up for the last 6 months was the rumors that they were going to get purchased for $80/share. Ain't going to happen in light of subprime.
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st sell
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79% of home loans in the first 3 quarters of 2006 were stated-income loans, in which the borrower's income is not verified. Doesn't sound like good
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BETA<1, P/EG<1, P/E<10
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