Flagstar Bancorp Inc (FBC)

[guster0]

Keep the rally going here is what is needed IMHO.
They need to make the community bank profitable!
They need to get rid of TARP with over 300 million in DTA's they need to be able to deploy those to payoff TARP.
They will need to strengthen the mortgage bank and do so in a hurry as business will continue to deteriorate at a (let's call it RAPID pace) due to higher mortgage interest rates.
Once TARP is done with a small dividend to shareholders will allow PPS to continue it forward pace along as the company can maintain it's profitable ways.

With major legacy lawsuits pushed aside coupled with those 300+ million DTA's this is a huge plus.
The downside is the Community bank continues to be a drag on the company (they did address this on the call and are working to correct the negative entry on the BS and trying to make that a positive).
Increasing interest rates will continue to drag on the mortgage side. Without a larger share of the market place this could cause a large impact on profits.

I remain long my position as I feel we will level off in the real estate market and feel that we will go to a normal setting vs the major ups and downs. If FBC increases market share in this area we will continue our profitable ways. Once the community bank is back in a profitable stance that will also fortify the profitability.
Utilizing the 300+ million in DTA will also be a bonus.

GLTA!