2008-06-19 — ml-implode.com
"After an analyst downgrade sent their stock diving 30% to $2.35 today, BankUnited Financial of Florida tonight issued a press release announcing a secondary stock offering. The bank is looking to raise $400 million of capital, which at the current stock price would translate into an additional 170m shares.
As of March 31st, the company had only 35 million shares outstanding. I’m no expert on secondary stock offerings, but seems to me that issuing another 170 million will effectively wipe out existing shareholders."
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Nickles&Dimes at 05:26 2008-06-20 said:
A few years ago BankUnited was cranking out Option ARMs and paying as much as 4 YSP. Brokers loved the product. Business was booming of course and when asked management said that the defaults were low to nonexistant. Of course Option Arms were new to their portfolio and hadn't adjusted nor had the real estate market values collapsed. AE's tried to get a wider product offereing (virtually all production at the time was Option Arms) but management viewed neg am loans as just too profitable (accounting wise) to abandon. It was an OK place to work but the processing was terrible and underwriting slow. I heard they closed up wholesale on the west coast; I'm surprised that they are still out there. Permalinkadd a comment | go to forum thread
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