Fremont General Corp (FMNT.PK)

Top bull pitch pretty much says it all. Unfortunately, I think he got in too early at $7. At current price, I think the only way is up as evidenced by lack of significant volume and a slight movement up in face of fresh round of sub-prime fears and broader market decline.

As of 9/30, nearly all subprime loans gone; those left are discounted about 50%- should be able to dispose of rest more than 50 cents on the dollar (with gain from reversal of loss provision).

Also, will make money in short term from unwinding of remaining commercial real estate with iStar and from loan servicing. Plenty of liquidity on books to meet current obligations.

Regulatory approval of new management team and lifting of cease and desist order should occur shortly. With a respectable team, a clean balance sheet and nearly $6 billion in customer deposits usable for lending out in a credit crunch environment, I think there is real upside.

Nevertheless, at this point this is a spec play. Regulatory blessing of management has not officially occured. Issues from subprime loans could still crop up in the form of heavy repurchases and/or lawsuits. If we head into recession, launch of new lending initiatives could be difficult.