Sphere 3D Corp (ANY)

[Hugodrax]

I do thank ANY for leading me to put a massive shirt on Opus Bank. One of my biggest ever.

Their lack of credit standards is now killing them as their loans go sour. Imagine lending $20M to ANY at like 5%! They lent $40M to a company in even worse shape. They just canceled the dividend and the CEO is "waiving" his bonus lol.

I said OPB was a dumb bank and they are. Really, really, dumb. Banks are levered 10x or more so even a 5% hit to their loan book cuts the equity in half. That's why it's so great to short the dumb ones like Opus.

I did a deep dive and spoke to tons on people in California and a consistent theme was that many loans that were turned down by other banks ended up getting done at Opus.

Re ANY you can bet they'll be desperate to get paid back. My best guess is they are going to take a 30-50% hit on their loan and everyone else including Cyrus is going to get wiped.

IMHO and speculation only.