Impac Mortgage: Finally Turning the Corner
Michael Kudrna submits:
Impac Mortgage (IMPM) released their much anticipated 2009 earnings results Monday night and will host a conference call Tuesday at 12pm eastern to further discuss. For those new to IMPM, they had accumulated a significant amount of debt during our recent financial crisis and have been in the process of cleaning their financials to survive. IMPM was once a stock which traded over $275 and last year was trading as low as $.16. After my initial review of the earnings release, it looks like IMPM is finally turning the corner to the surprise of many. I have been accumulating shares under $4 and now that we have more clarity with earnings, I expect the positive news plus the bullish chart indicators to elevate the PPS from here.
Per the earnings release and in summary, IMPM reported earnings of $10.8 million (excluding preferred stock dividend of $7.4 million) for the year end 2009. To show the drastic improvement from a year ago, IMPM reported a loss of 44.7 million in 2008. Stockholders’ equity for discontinued operations was a loss of $14,672 and for continued operations was positive $30,105 for a total of $15,433. IMPM also reported diluted net earnings per common share before redemption during 2009 at $0.44. This is very positive when compared to the loss of $7.34 during 2008 which is a 106% difference year over year. These numbers indicate IMPM has finally turned the corner and now we need to know whether they can gain traction from here in a poor economic environment.
Investing, Long Term Investment, stock market | admin March 16, 2010
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