Accredited Home Lenders (LEND, Financial) and Fremont General (FMT, Financial) - Two companies caught up in the pessimism of the recent sub-prime mortgage industry that have been hit really hard, but had a huge comeback just this week!
Let's look at FMT & LEND from a numbers standpoint:
LEND:
Market Value: $296.81 Million
Debt: $10.43 Billion
Total Capitalization: $10.5 Billion
Book Value: $34.22
Sales: $439.15
Net Income: $57.67
Current EPS: $2.81
2002 EPS: $1.98
1997 EPS: $0.01
Current Dividend: $0.00
P/E Ratio: 3.4
Price/Book: .34
Dividend/EPS: N/A
Net Profit Margin: 12.56%
EPS/Book: 8.18%
Growth in EPS
5 Year: 112%
10 Year: Very Large
Return on Total Capitalization: 0.55%
FMT:
Market Value: $645.46 Million
Debt: $1.5 Billion
Total Capitalization: $1.55 Billion
Book Value: $18.70
Sales: $1.1 Billion
Net Income: $167.65
Current EPS: $2.21
2002 EPS: $0.89
1997 EPS: $1.37
Current Dividend: $0.48
P/E Ratio: 3.75
Price/Book: .44
Dividend/EPS: 21%
Net Profit Margin: 15.24%
EPS/Book: 23.37%
Growth in EPS
5 Year: 391.01%
10 Year: 218.98
Return on Total Capitalization: 10.82%
From first glance, the stock price of LEND may have looked cheaper at $3.97, which would be fair to say since it’s up 200% since then; however, with their debt structure LEND may not be worth owning long term compared to FMT. Obviously, the choice remains in your hands and if you took either of them earlier in the week, you are probably happy today!
___________________________________________
Jonathan D. Poland is the Founder, Editor and Chief of the PigsGetRich Investment Network. www.pigsgetrich.com
Let's look at FMT & LEND from a numbers standpoint:
LEND:
Market Value: $296.81 Million
Debt: $10.43 Billion
Total Capitalization: $10.5 Billion
Book Value: $34.22
Sales: $439.15
Net Income: $57.67
Current EPS: $2.81
2002 EPS: $1.98
1997 EPS: $0.01
Current Dividend: $0.00
P/E Ratio: 3.4
Price/Book: .34
Dividend/EPS: N/A
Net Profit Margin: 12.56%
EPS/Book: 8.18%
Growth in EPS
5 Year: 112%
10 Year: Very Large
Return on Total Capitalization: 0.55%
FMT:
Market Value: $645.46 Million
Debt: $1.5 Billion
Total Capitalization: $1.55 Billion
Book Value: $18.70
Sales: $1.1 Billion
Net Income: $167.65
Current EPS: $2.21
2002 EPS: $0.89
1997 EPS: $1.37
Current Dividend: $0.48
P/E Ratio: 3.75
Price/Book: .44
Dividend/EPS: 21%
Net Profit Margin: 15.24%
EPS/Book: 23.37%
Growth in EPS
5 Year: 391.01%
10 Year: 218.98
Return on Total Capitalization: 10.82%
From first glance, the stock price of LEND may have looked cheaper at $3.97, which would be fair to say since it’s up 200% since then; however, with their debt structure LEND may not be worth owning long term compared to FMT. Obviously, the choice remains in your hands and if you took either of them earlier in the week, you are probably happy today!
___________________________________________
Jonathan D. Poland is the Founder, Editor and Chief of the PigsGetRich Investment Network. www.pigsgetrich.com
