Thornburg Mortgage (TMA) was just suspended from trading on the NYSE. Its price has been below $1 for too long. It trades at $.24. Extraordinary, because it 52-week high is $140.50.
Losses and fear of more losses have taken Fannie Mae (FNM) down to $.87. It traded as high as $40.45 a year ago. The situation is not much better at Freddie Mac (FRE). It sits at $.88 off its 52-week high of $37.18. Remember, these companies were the twin pillars of the US mortgage industry.
VSInvestor has several volume trading alerts today.
Thornburg Mortgage (TMA), a highly risky mortgage company stock is up sharply.
Several chip firms lead by Marvell Technology (MRVL) are down on negative brokerage reports.
American Eagle Outfitters (AEO) is off after earnings.
Douglas A. McIntrye
Thornburg Mortgage (TMA) Worries about going out of business. Down to $.22 from 52-week high of $27.82.
Huntsman (HUN) Apollo walks on buy-out deal. Falls to $12.15 from 52-week high of $28.40.
Coventry Health Care (CVH) Cuts guidance. Sells off to $30.10 from 52-week high of $64.
Unitedhealth Group (UNH) Concerns about slowdow in the health insurance sector. Dives to $26.94 from 52-week high of $59.46.
Motorola (MOT) Competition keeps coming out with strong products. Falls to $7.61 from 52-week high of $19.68.
XM Satellite (XMSR) Goldman says merger with Sirius (SIRI) will not help company’s prospects. Plunges to $7.95 from 52-week high of $16.44.
Sirius (SIRI) sells down to $1.97 from 52-week high of $3.94.
Douglas A. McIntyre
IndyMac Bancorp (IMB) Fitch cuts debt rating Down to $1.83 from 52-week high of $37.50.
Thornburg Mortgage Asset (TMA) Ongoing concerns about company losses. Drops to $.64 from 52-week high of $28.23.
Whole Foods Market (WFMI) Big earnings miss. Sells off to $28.96 from 52-week high of $53.65.
Uranium Res (URRE) Company does private placement at low share price. Dips to $4.06 from 52-week high of $14.99.
Douglas A. McIntyre
The short interest in most large stocks traded on the NYSE increased as measured on March 14. The figures compare to February 29. Car stocks were hit especially hard. Shares short in Ford (NYSE: F) moved up 20.3 million to 248.9 million. For GM (NYSE: GM) the number was up 19.4 million to 85.9 million.
Despite the fact that many big financial stocks are already close to lows, traders were willing to bet that they would fall off further. Shares short in Washington Mutual (NYSE: WM) moved up 15.9 million to 168.8 million. The short interest in Citigroup (NYSE: C) jumped 7 million to 125.6 million. For Wells Fargo (NYSE: WFC) the number added 9.3 million to 117.5 million. For Countrywide (NYSE: CFC) the figure was up 9.3 million to 111.5 million and at Wachovia (NYSE: WB) shares sold short were up 2.2 million to 105.4 million.
Other notable financial stocks with large increases included Fannie Mae (NYSE: FNM), up 11.4 million to 78 million, Thornburg (NYSE: TMA), up 11 million to 25.8 million, and CIT (NYSE: CIT), up 10 million to 20.1 million.
Troubled firms that have recently had bad news were hit very hard. Shares short in Sprint (NYSE: S) moved up more than any other NYSE-traded company, jumping 30.1 million to 75.2 million. Shares sold short in Blockbuster (NYSE: BBI) increased 8 million to 57.8 million.
Shorts moved out of Micron (NYSE: MU) where the number fell 4.3 million to 87.5 million, Wal-Mart (NYSE: WMT) where short interest dropped 3 million shares to 45.1 million, CBS (NYSE: CBS) which lost 2.7 million shares short falling to 29.2 million, The New York Times (NYSE: NYT) with shares short dropped 2.8 million to 30.6 million, and Time Warner (NYSE: TWX) which saw its short interest drop 2.2 million to 38.5 million.
Source: NYSE
Douglas A. McIntyre
Thornburg Mortgage, Inc. (NYSE:TMA) is seeing shares get hit this morning. While new financing may be a reprieve, it looks like it is coming at a high price with conditions that will be difficult to maintain.
The company announced that it has entered into an agreement for 364 days with 5 of its remaining reverse repurchase agreement counterparties and their affiliates, who are providing approximately $5.8 billion of reverse repurchase agreement financing. These counterparties agreed to a contractual reduction of margin requirements and agreed to a suspension of their rights to invoke further margin calls and related rights. This includes subsidiaries of Bear Stearns, Citigroup, Credit Suisse, Royal Bank of Scotland, and UBS Securities LLC.
While Thornburg has already made reductions, it must further reduce its current reverse repurchase agreement borrowings outstanding with two reverse repurchase agreement counterparties by an additional $1.2 billion combined. This will be achieved either through asset sales or transfers of collateral specified.
The continued effectiveness of this agreement is contingent upon a variety of factors, most importantly one that requires that Thornburg Mortgage raise a minimum of net proceeds of $948 million in new capital within seven business days. It must also establish and maintain a liquidity fund in the amount of $350 million, and to maintain an amount in that fund equal to 5% of the monthly outstanding borrowings of its reverse repurchase agreement counterparties in investments.
You should read through the full press release because the terms go on and on. Thornburg shares are down over 10% at $2.60 in early trading. It looks like the initial fears about having to give away the keys to the castle may be more prevalent than the original filing from 2 days ago to raise capital. The situation at Thornburg may be getting tougher before getting easier.
Jon C. Ogg
March 19, 2008
Thornburg Mortgage Inc. (NYSE: TMA) has filed an open shelf registration with the SEC to sell securities from time to time in the form of debt securities, common stock, preferred stock, warrants and shareholder rights. As this is an open filing, no limit was set as to the amount and no underwriters were named.
This filing does note that certain selling security holders may also sell from time to time an unstated amount of securities. According to filing, Thornburg will use the majority of proceeds to finance the acquisition or origination of additional adjustable rate mortgage (ARM’s) assets. It may also use a portion of the proceeds for other general corporate purposes, which were noted as repayment of debt maturities, debt redemption, acquiring assets, capital expenditures and working capital, and for liquidity needs. As normal, no proceeds from the sale of securities by the selling holders will go the company.
Thornburg Mortgage Inc. shares closed down 1.3% at $2.25 today, and shares have traded in a 52-week trading range of $0.69 to $28.40.
Jon C. Ogg
March 17, 2008
Below are the top calls that 247WallSt.com is focusing on in pre-market trading this Wednesday:
Jon C. Ogg
March 12, 2008
Lehman (NYSE: LEH) hit by concerns about huge Q1 write-offs. Falls to $42.77 from 52-week high of $82.05.
Citigroup (NYSE: C) sells off because bank may have to raise more money. Down to $19.74 from 52-week high of $55.55.
Level 3 (NASDAQ: LVLT) loses its president, raises issues about next quarter. Sells down to $1.87 from 52-week high of $6.46.
Fannie Mae (NYSE: FNM) drops on negative comments in Barron’s. Sells off $18.50 from 52-week high of $70.57.
Thornburg Mortgage (NYSE: TMA) Capital calls raise concerns about bankruptcy. Goes down to $.75 from 52-week high of $28.40.
Keryx Biopharmaceuticals (NASDAQ: KERX) Big clinical trial falls short. Shares trade off to $.60 from 52-week high of $11.70.
Douglas A. McIntyre
Thornburg Mortgage (NYSE: TMA) Fear of Chapter 11. Falls to $1.26 from 52-wek high of $28.40.
CIT Group (NYSE: CIT) Lehman Brothers cuts price target. Drops to $15 from 52-week high of $61.47.
iStar Financial (NYSE: SFI) Price target cut by Citigroup. Falls to $12.71 from 52-week high of $49.84.
JP Morgan (NYSE: JPM) Worries about more write-offs. Sells down to $37.15 from 52-week high of $53.25.
Citigroup (NYSE: C) Concerns about need to raise more capital. Down to $21.11 from 52-week high of $55.55.
Merrill Lynch (NYSE: MER) Another candidate for big write-downs. Down to $45.73 from 52-week high of $95.
Fannie Mae (NYSE: FNM) Mortgage business slightly out of favor. Falls to $21.21 from 52-week high of $70.57.
Wachovia (NYSE: WB) Money center banks all dropping. Sells down to $27.36 from 52-week high of $57.45.
Lehman Brothers (NYSE: LEH) Joins investment banking low club. Drops to $45.20 from 52-week high of $82.05.
Morgan Stanley (NYSE: MS) Ditto. Down to $39.46 from 52-week high of $90.95.
Omrix Biopharmaceuticals (NASDAQ: OMRI) Misses on earnings. Falls to $13.88 from 52-week high of $40.90.
PETsMART (NASDAQ: PETM) Pets stop shopping. Earnings off. Drops to $19.64 from 52-week high of $35.48.
Douglas A. McIntyre
Shares of Annaly Capital Management, Inc. (NYSE: NLY) are being pounded this morning. The reason for the selling isn’t on its own news. Competitor Thornburg Mortgage (NYSE: TMA) has fallen some 60% on massive share volume after it disclosed new margin calls that have gone unmet, higher default rates, using default rights of its own, a Fitch downgrade, multiple analyst downgrades, and even the question of bankruptcy.
Annaly even raised $900 million recently. Annaly has long been thought of as immune because of its high quality mortgages, yet the real estate in the movie Wall Street might have been right by saying "Even the rich are bitching!" Annaly has see n a 19% drop to $15.61 in trading after the first hour of the market open and it has now fallen more than 25% from recent highs seen just over the last two weeks.
Annaly is also involved in ownership and running Chimera Investment (NYSE: CIM), which we have applauded last year as the first pure vulture fund filed to come public. That was working better than well for a while, but this is now trading as a busted post-IPO company and it has put in new post-IPO lows this morning. On last look shares were down almost 10% at $14.51, above the $13.99 lows seen this morning. We had noticed the sharp price correction in this one earlier this week and last with no real news.
We still think many financial mergers are going to almost end up being mandated. But at this point, the fallout in the mortgage and credit malaise is leaving no one immune. The beatings continue.
Jon C. Ogg
March 6, 2008
A number of the large financial stocks took news of a write-down at UBS (NYSE: UBS), debt problems at Merrill Lynch (NYSE: MER), and downgrades of Thornburg (NYSE: TMA) hard.
Hitting 52-week lows early in the day were Merrill Lynch at $46.41, Fannie Mae (NYSE: FNM) at $22.45, Thornburg at $1.26, JP Morgan (NYSE: JPM) at $37.51, and Freddie Mac (NYSE: FRE) at $20.27.
Shares in Citigroup (NYSE:C), Bank of America (NYSE: BAC), and Washington Mutual (NYSE: WM) also traded off sharply.
Douglas A. McIntyre
Security Capital Assurance (SCA) Warns of loss and hires investment bank to help out of trouble. Stock drops to $.67 from 52-week high of $34.58.
Deerfield Capital (DFR) Big loss on impairment charges. Seels off to $2.75 from 52-week high of $17.44.
Thornburg Mortgage (TMA) Chapter 11 worries. Falls to $3.53 from 52-week high of $28.40.
Fremont General (FMT) Company may be on the block. S&P ratings cut. Down to $.58 fom 52-week high of $13.80.
Stereotaxis (STXS) Quartely loss and delay of catheter product. Runs down to $3.82 from 52-week high of $16.88.
Douglas A. McIntyre
Here are some of the top individual analyst calls in pre-market trading:
Below are some sector calls:
Jon C. Ogg
February 6, 2008
On tonight’s MAD MONEY on CNBC, Jim Cramer noted that selling stocks today isn’t a good idea and that this will be good for retail stocks and others too. You have to keep in mind the same-store-sales as the key metric, but here are his retail names he went through:
Cramer actually talked positive about one homebuilder and a mortgage player:
He thinks that takeovers are coming, and he is under the impression that Bear Stearns (NYSE: BSC) may actually get taken over after a huge drop. He thinks it is just too valuable to others. Just FYI, Cramer did discuss this Bear Stearns takeover possibility on TheStreet.com earlier this morning or this afternoon. In short, he thinks that this might merit a reason to stop being so cynical. He wants to buy something in retail and something in banking.
Last week Cramer went value fishing for technology companies that he thought were either overlooked during the meltdown or that had been oversold. Here were his picks in technology:
Jon C. Ogg
January 24, 2008
Below is a snapshot of the key pre-market news that we are focusing on for early pre-market trading this Tuesday:
Jon C. Ogg
January 15, 2008
The September short interest for NYSE stocks is out, and a number of big names in mortgages, retail ,and housing say bets against them move up. The figures compare shares short on September 14 compared to August 15, 2007.
Among the companies with the largest increase in short position were Jones Apparel (JNY), DR Horton (DHI), and Thornburg Mortgage (TMA),
Ford (F) topped that short list with 191.1 milion shares short, little changed from August. Countrywide, Home Depot, and Best Buy were also in the top ten.
Below is the short interest in selected companies.
Largest Short Positions
Company Shares Short
Ford (F) 191.1 million shares short
Qwest (Q) 85.9 million shares short
AMD (AMD) 84.4 million shares short
Counrtywide (CFC) 78.7 million shares short
Time Warner (TWX) 64.9 million shares short
Home Depot (HD) 63.8 million shares short
Best Buy (BBY) 62.8 million shares short
GE (GE) 59.7 million shares short
GM (GM) 56.3 miillion shares short
Altria (MO) 50.1 million shares short
Sprint (S) 47.8 million shares short
Largest Increases In Short Position
Company Increase
Marsh & McLennan Up 20.2 million
Jones Apparel Up 19.9 million
Rolm & Haas Up 16.1 million
Rite Aid Up 10.7 million
DR Horton Up 8.4 million
Delta Up 6.8 million
Thornburg Up 5.7 million
Texas Instruments (TXN) Up 5.3 million
MBIA Up 4.1 million
Largest Decreases In Short Position
Company Decrease
Tenet Down 16.1 million
Wells Fargo Down 15.6 million
CVS Down 15.5 million
Schering-Plough Down 15.2 million
Fannie Mae Down 14.6 million
Wachovia Down 13.8 million
Bank of America (BAC) Down 9.5 million
Valero Down 9.2 million
News Corp (NWS) Down 7.8 million
JP Morgan (JPM) Down 7.7 million
Data from WSJ and NYSE
Douglas A. McIntyre
We reviewed our different portfolios of key stocks to see which ones performed the best today, and it wasn’t just the financials as a general class. At the end of the day, Jim Cramer’s old list of stocks from his "Mortgage Madness Portfolio" took the cake.
This is the list: MGIC Investment (MTG), Countrywide (CFC), Bear Stearns (BSC), KB Home (KBH), Centex (CTX), Citigroup (C), Goldman Sachs (GS), Blackstone (BX), MBIA (MBI), Thornburg (TMA), Beazer (BZH), and Washington Mutual (WM).
We ran the screen right before the close, but take a look at how this portfolio did after the 50/50 dual rate cut from the FOMC today (Ticker; Price; Changes ($,%); 52-week range):
MTG $33.55 +$2.75 (+8.93%) $21.00-70.10
CFC $19.91 +$0.64 (+3.32%) $15.00-45.26
BSC $119.87 +$4.49 (+3.89%) $99.75-$172.61
KBH $29.27 +$1.15 (+4.09%) $25.95-$56.08
CTX $29.22 +$1.38 (+4.96%) $25.59-58.42
C $48.33 +$2.30 (+5.00%) $44.66-57.00
GS $200.53 +$12.92 (+6.89%) $157.38 – 233.97
BX $24.36 +$0.71 (+3.01%) $21.30 – 38.00
MBI $61.95 +$4.47 (+7.78%) $48.95 – 76.02
TMA $13.50 +$0.30 (+2.27%) $7.49 – 28.40
BZH $11.37 +$1.90 (20.06%) $8.10 – 48.60
WM $37.70 +$1.74 (4.84%) $31.27 – 46.38
If you added in Hovnanian (HOV) for it saving itself with a homebuilder firesale last weekend and add in Lehman Brothers(LEH) because of its better than expected (and far less bad) earnings from this morning, then this entire portfolio would be the hottest smoking portfolio.
This blew past the tech stocks from Cramer’s old "NEW FOUR HORSEMEN OF TECH" and it blew well past our list of defensive stocks we gave for crummy markets.
Jon C. Ogg
September 18, 2007
Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.
Shares of Thornburg Mortgage (NYSE:TMA) are trading up by roughly 5% in pre-market activity. This news could have been mostly expected, but the good news is that there was not a cancellation or delay.
Thornburg announced the completion of a collateralized mortgage debt transaction that was collateralized by $1.44 Billion of its prime hybrid Adjustable Rate Mortgage loans (in the publicly-registered Thornburg Mortgage Securities Trust 2007-4). The company first announced the possibility of this transaction last week on Thursday, August 30, 2007, and it was completed on Friday, August 31, 2007.
This transaction is accounted for as a financing and not as a sale, the proceeds of which were used to reduce the company’s borrowings under its ARM loan warehouse financing lines by approximately $1.37 Billion. This should allow Thornburg to continue with the funding of existing loans in the pipeline and the company noted in the press release that it is positioned to continue increasing the pace of its mortgage loan funding.
The lender also saw its shares upgrades this morning in an analyst call. Thornburg shares were raised to Outperform from Underperform at Friedman Billings Ramsey.
If you have been watching the tape on the comments out of lenders, it appears that much of the ongoing market malaise tied to CDO’s and lending derivatives is seeming to get better and better. If you won’t admit to better, it’s at least a lot "less bad" than when it looked like any and every lending house was at risk of imploding and like no one was ever going to be able to borrow again.
Jon C. Ogg
September 4, 2007
Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.
ABY raised to Neutral at UBS.
AMD raised to neutral at Credit Suisse.
AG raised to neutral at Credit Suisse.
AEO raised to Outperform at Cowen.
BLOG started as Outperform at Wachovia.
DVA raised to Buy at Deutsche Bank.
EXEL cut to Mkt Perform at Wachovia.
FCSX raised to BUy at B of A.
HOKU raised to Mkt Perform at Piper Jaffray.
HSII cut to Sell at UBS.
INFA started as Outperform at CIBC.
KFN cut to Sell at UBS.
KOP cut to Hold at Jefferies.
KPN cut to Hold at Citigroup.
KSU raised to Buy at UBS.
MNST cut to Neutral at UBS.
MXIM started as Outperform at RBC Capital.
OII started as Overweight at JPMorgan.
OTE cut to Peer Perform at Bear Stearns.
PCG raised to Overweight at Lehman.
RDS/A raised to Buy at UBS.
RHI cut to Neutral at UBS.
RIMM cut to Peeer Perform at Bear Stearns.
SMOD cut to Hold at Citigroup.
SPR started as Overweight at Lehman.
TEF cut to Hold at Citigroup.
TMA raised to Outperform at FBR.
TYC raised to Buy at Deutsche Bank.
TYPE started as Buy at B of A.
TYPE started as Buy at Jefferies.
WEC raised to Overweight at Lehman.
Jon C. Ogg
September 4, 2007
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