DFC

[icetonez]

Anyone else stuck in this? If they did get their credit line pulled and Delta goes bankrupt, there will be a few dollars per share given out in a liquidation?

[DesertCat]

This is hard thing to calculate. Some of it will depend upon what they get for their loans. My guess is that bankruptcy would allow them the time to get full value for the mortgages. You need to back out the securitization assets/liabilities to figure out their real obligations and assets. Then you need to determine what assets to write down (prepaids?) and which are solid. Lastly they carry interests in prior securitizations, you should find the reports for those to estimate what their interests are worth.

If you weren't already in, I'd counsel waiting until the company gives you some direction and updated financials. It's a lot of guesswork at this point.

[hawk59]

DFC? Never heard of it.

[KDuff]

Delta Financial. DFC canceled its earnings release and conference call earlier this morning. Their management did not do a good job helping shareholders understand why the CC was delayed.

They are probably having a credit crisis.

DC mentioned DFC last Friday. After taking a cursory look at their operation, it seemed that they would be less likely to get walloped like New Century, AHM, NFI, et al. Oops.

This site is tracking the number of mortgage lenders that have blown up in the last year: up to 114.

[icetonez]

Looks like DFC is going to make it. Monish in for another $10M. I'm going to buy more.

[hlacheen]

I think there might be some good value here. I'm gonna do som research tonight.