STOCKS TELEGRAPH

Tag: mortgage

  • SGOCO Group, Ltd. (SGOC) Stock Skyrockets as Latest Possible Target of Meme Stock Phenomenon

    SGOCO Group, Ltd. (SGOC) Stock Skyrockets as Latest Possible Target of Meme Stock Phenomenon

    SGOCO Group, Ltd. (SGOC) stock prices were up by an astounding 279.46% as of the market closing on July 9th, 2021, bringing the price per share up to USD$9.79. Subsequent premarket fluctuations have seen the stock surge by 44.02%, bringing it up to USD$14.10.

    About SGOC

    SGOC manufactures a variety of offerings, primarily phase change storage systems. Consisting of a number of businesses based in Hong Kong, SGOC focuses on VR technology, energy saving technology, mortgage lending, property investment, and a host of other growth segments across various markets. The company is continuously allocating resources towards the building of an ecosystem of sustainable growth that results in healthy gains in shareholder value.

    SGOC Financials

    The penny stock company is based in Hong Kong, with a market cap in excess of USD$1 billion. This is despite the company reporting only USD$4 million in revenue for 2020, ultimately proving itself to be unprofitable at the moment. The company also reported a liquidity position of USD$3 million, indicating a balance sheet that does not reflect its inflated market cap.

    SGOC as the Latest Meme Stock

    The company’s stock has recently skyrocketed by more than an astounding 500%. This is despite an apparent absence of significant news about the company or changes in SGOC fundamentals. Without proper contextualization, it seems possible that SGOC has become the latest target of the meme stock phenomenon that has swept through the market . This is reflected by the jump from an average 10-day trading volume of company stock in the amount of 664,000 to more than 100 million.

    SGOC Short Interest

    The meme stock phenomenon is driven by retail investors who target underdog companies in order to execute a coordinated short squeeze. Historically, meme stocks have exhibited a high short interest, which is not the case with SGOC. The company indicated a short interest level of 8%, casting doubt on its status as a meme stock. Nevertheless, data from Fintel reports a short volume ration of more than 25%. Even if the growth is not driven by the meme stock phenomenon, the limited evidence available does suggest the influence of momentum and day traders.

    Future Outlook for SGOC

    Refusing to look a gift horse in its mouth, SGOC is poised to capitalize on the expanded opportunities afforded to it in light of its recent explosion of equity value. Despite the inherent risk and volatility associated with meme stocks, the company is keen to allocate resources towards maintaining its trajectory of fortuitous success by ushering in more organic growth moving forward.

  • loanDepot, Inc. (LDI) Stock Trends Higher Following Changes in Executive Leadership

    loanDepot, Inc. (LDI) stock prices were up by a marginal 1.15% shortly after market trading commenced on June 25th 2021, bringing the price per share up to USD$13.14 early on in the trading day.

    Joint Venture

    June 3rd 2021 saw the company announce an innovative new joint venture by the name of Farm Bureau Mortgage. As the second-largest retail mortgage lender in the U.S, LDI is keen to collaborate with Farm Bureau Bank, with its member-base of more than 5 million. The joint venture will see the two finance giants work together to consolidate and expand their cumulative market footprint.

    Farm Bank Bureau

    The federally chartered Savings Bank, Farm Bank Bureau has its HQ in Nevada and offers a myriad of financial products and services, including, but not limited to, checking accounts, quto loans, credit cards, and business services. Having been in operation since 1999, the Bank has come to serve local Farm Bureaus and their members in a total of 45 states.

    Dividend Payout

    May 13th 2021 had seen the company announce a regular cash dividend of USD$0.08 oper share of its Class A common stock and Class D common stock. The dividend will be paid out on July 16th 2021 to investors who were stockholders of record as of the close of July 1st 2021.

    Net Income Reports

    Net income for the first quarter of the fiscal year 2021 was reported at USD$427.9 million, down from the USD$547.2 million reported in the previous quarter. Adjusted net income was down to USD$319.4 million for the quarter, down from USD$375.7 million for the fourth quarter of 2020. These quarter-over-quarter decreases were largely attributable to a decline in gain on sale margins and increases variable expenses arising from higher loan origination volume.

    Solid Liquidity Position

    As of March 31st 2021, the company reported USD$630.5 million in unrestricted cash and cash equivalent, a massive increase from their liquidity position as of December 31st 2020. This drastic increase is largely driven by the issuance of USD$600 million in senior notes, offset by USD$6 million as per the company’s existing operating agreement. AS per the same agreement, the company also dished out profit distributions in the amount of USD$160.3 million.

    Future Outlook for LDI

    Armed with a solid liquidity position and an exciting new joint venture, LDI is poised to continue its trajectory of success. Current and potential investors are hopeful that management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Broadway Financial Corp. (BYFC) Stock Plummets After Falling Out of Favor with Hedge Funds

    Broadway Financial Corp. (BYFC) Stock Plummets After Falling Out of Favor with Hedge Funds

    Broadway Financial Corp. (BYFC) stock prices were down by a concerning 16.3234% shortly after market trading commenced on June 17th, 2021, bringing the price per share down to USD$2.8199 early on in the trading day.

    Merger with CFBanc Financial

    The company completed its merger with CFBanc Financial Corp., with Broadway Financial Corp. continuing on as the sole surviving entity. Immediately after the execution of the merger, Broadway Bank merged with and into City First Bank of D.C., with the latter surviving as a surviving entity which concurrently changed its name to City First Bank, National Association.

    Private Placement

    Subsequent to the merger, the company completed the sale of 18,474,000 shares of its common stock in private placements with both institutional and accredited investors. The private placements saw the generation of USD$32.9 million in gross proceeds. The combination of the merger and the completion of the private placement has seen a significant increase in the company’s total equity capitalization and growth potential, as well as facilitating increased lending to communities that report low-to-moderate incomes.

    Consolidated Net Loss

    The first quarter of the fiscal year 2021 saw the company report a consolidated net loss of USD$3.5 million, representing a consolidated net loss of USD$0.13 per share. This significant year-over-year increase in net loss is primarily driven by merger related expenses amounting to USD$5.4 million. Of this total, USD$3.4 million were severance and other compensation costs, USD$1.8 million were professional service expenses, and USD$213,000 in costs arising from insurance deals.

    Total Assets

    As of March 31st, 2021, BYFC reported total assets in the amount of USD$479.6 million, a USD$3.8 million decrease from the USD$483.4 million reported as of December 31st, 2020. This year-over-year difference is largely attributable to decreases in cash and cash equivalents, amounting to USD$8 million, and investment securities available-for-sale of USD$675,000. These developments were offset by increases in loans receivable held for investment of USD$2.4 million, deferred tax assets of USD$1.5 million, and USD$1.2 million of other assets.

    Future Outlook for BYFC

    Armed with a solid liquidity position, BYFC is poised to return to its trajectory of success. The company is keen to reverse recent downwards trends in its equity value with the effective allocation of resources. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.