The article is here.
The shorts are running for the hills, but basically this is a press statement that says:
"Business is really bad, but we've found some more people (40 banks!) to help us fund operations."
It's interesting that they released so much bad news (cockroaches) with the financing deal.
I don't anticipate them having much more good news for the rest of the year or next year, but they have bought themselves some time.
What should they be valued at?
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CFC is impossible to value since no one has any idea how to value the loans they have on their books. One has to surmise that the loans CFC continues to hold are loans which it cannot sell.
Yes - their August operating statement contained lots of bad news hiding out amongst the few brights spots.
Also, going forward, their stated goal is to use more traditional lending practices, make almost exclusively conforming loans & rely on their banking arm for financing. In other words, they are trying to convert themselves into an S&L. This is not unlike a mammal evolving into a dinosaur.
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