EOS Preferred Corp Series D Pfd (fka EOSPN)

[insomniac]

HI ... Your assuming there gonna pay the dividend.??
My concern is the price action of this stock.. The sell volume has been somewhat large over the past several months. Even when the mkt has a powerful upward move like we just had, it still sees selling pressure.. Im drawing at straws here,but Im thinking they cant find a buyer for the bank.. Who needs a bank right now with all the questions still hanging over the industry..?? Just a hunch.
Someone is getting news and it's not showing up where we /I can see it. No news ,no investor relations dept.. What to think??? Your input is appreciated...

[jimbo1]

Insomniac: A while ago we corressponded about EOSPN and I was wondering if you have anything new on it now that it is selling under 18. Thanks, and hope to hear from you. Jim Power

[jimbo1]

Has anyone heard anything? HMan seems to be the best informed what does he have to say besides a seller is around. Bought some today with bids way below the market. Got it as low as 17.02 .Potential current yield is 12%+ at 17.25 and a really big 59% if they call it before year end.

[insomniac]

This thing has been dropping for months.. It dosent seem like just one seller...It seems like a lot of people know something ,we havent found out yet.

[h_man_investor]

Yes still involved- there seems to be seller out there. Who knows could be a margin call or highly motivated seller. Nothing fundamentally has changed.

Transfer from OTS to OCC may cause a delay but once straightened out I expect the language in the press release to include a non-objection to reinstate the dividend.

[insomniac]

H-man Are you still in this puppy?? It seems to have a case of the worms like the rest of the mkt.

[h_man_investor]

When did you purchase your shares? The x-date was July 18th which is two days before the record date but you needed to buy the shares on or before Friday the 15th.

The record date is the day you need to own the shares. If you bought the shares on Friday and with 3 days for settlement you owned the shares on Wednesday. If you bought on Monday, settlement would be on Thursday and you would not be an owner of record on Wednesday.

So basically the shares had already gone "x" by the time of the press release announcing the dividend.

I did not have any troubles with my dividends.

[Rockyp_cigar]

Also, previous ex-divi dates were 2 days before the record date...so this one is really odd...or is it just my broker Schwab ?

[Rockyp_cigar]

Anyone have a problem with the last dividend ?

My broker says ex-div is July 26th.....I checked the press release and there is no ex-divi date mentioned, just the record date of July 20th.

Normally the ex-divi date is 2 days before record date which in this case was July 20th so the ex-divi date would have been July 18th.

If there was an unusual ex-divi date they should have mentioned it in the press release....this is strange ....anyone have contact info. for the company ?

Thanks in advance.

[MrchntDeth]

Agree - super interesting!

[insomniac]

I think you moved the mkt on dimeq today... Do you know the terms and trade basis for the warrants????

[h_man_investor]

Dimeq is going to get interesting

[insomniac]

H What are you buying or looking at, these days??

[insomniac]

I never got a "return call"... I just kept calling him,and he just happened to answer the phone. I have not been able to reach him since.

[h_man_investor]

You ate the first guy in aware of who got a return call from Lloyd

[insomniac]

NO It was shortly after they filed for the March divi..I think it was in April sometime.

[h_man_investor]

Recently?

[insomniac]

cfo kraski and investor relations guy winans

[h_man_investor]

I'm sure the application was related to the 1Q and 2Q dividend but the ability to pay out those dividends has passed. According to the prospectus, if they havent voted and declared the dividend by the end of the quarter, they cannot pay a dividend for that period.

I guess there is always the chance that they authorized the dividend dependent on apporval- but highly unlikely. Would be nice!

My guess is that they now have approval to pay out the 3Q dividend.

Whom did you speak with at the company?

[insomniac]

Mgmt told me,months ago ,that the application,, related to paying the dividend for the 1st and 2nd qtr. Nonetheless, this thing has been in distribution mode since May. We should see news about the divi if what they told me was accurate.

[h_man_investor]

OTS approved "capital distribution in excess of limitations:"

http://www.ots.treas.gov/?p=ApplicationSearch&appid=R1-2011-0057

Too late for the 2q dividend- potentially is approval to redeem the preferreds at par.

[insomniac]

H man.... Did you ever find out who's selling??? Is there any news out there.. ??? This one is hard to follow.

[h_man_investor]

doesnt matter- this is money good.

An institution is deemed well-capitalized if it has a total risk-based capital ratio of at least 10%, a Tier 1 risk-based capital ratio of at least 6%, a Tier 1 leverage ratio of at least 5% and complies with other regulatory requirements. At March 30, 2011 according to the FFIEC information, the Bank's total risk-based capital ratio was 26.75%, Tier 1 risk-based capital ratio was 26.75% and Tier 1 leverage ratio was 19.01%.

the big quesiton is the dividend- the OTS is being a pain in the ass and will not reinstate. in the end of july the OTS merges with the OCC so the OTS has no real authority to reinstate at this point. hopefully a new set of eyes at the OCC will get it reinstated.

but the reinstatement of the dividend will most likely just be a few remaining quarters.

without the dividend, at the current price its a 20% return for 1 year. not too bad for risk-free.

[insomniac]

H MAN Any updates on EOSPN?? Im wondering if the value of the bank has decreased.. It seems to me that the new reserve requirements will lessen the profitability of ALL banks.

[AKAPAK]

Aurora Bank: FOR SALE

http://www.reuters.com/article/2011/04/26/us-aurora-lehman-idUSTRE73P6M520110426

Exclusive: Lehman to start Aurora bank auction by June

By Paritosh Bansal and Caroline Humer

NEW YORK | Tue Apr 26, 2011 5:34pm EDT

NEW YORK (Reuters) - Lehman Brothers Holdings Inc (LEHMQ.PK) is expected to begin the sale process for Aurora Bank, worth around $850 million, by June as the bankrupt firm sells off pieces of itself to pay off creditors, sources familiar with the situation said.

Investment banks KBW Inc (KBW.N) and Lazard Ltd (LAZ.N) are expected to advise the Lehman estate on the sale of the unit, sources said.

Wilmington, Delaware-based Aurora, which was formerly known as Lehman Brothers Bank, has assets of about $4.4 billion. It services a loan portfolio of about $74 billion for others as of December 31, according to regulatory filings.

The sale comes as the fighting has increased among creditors over how much they will be paid back by Lehman, which was once a major Wall Street investment bank with $639 billion in assets but collapsed at the height of the financial crisis in September 2008.

This week, creditors including banks like Goldman Sachs (GS.N) and hedge funds, stepped up their fight for a bigger piece of that payback.

There are now three possible plans for the eventual winding down of Lehman's assets, including one from the Goldman group, one from investors including Paulson & Co, and one from the Lehman.

Some Lehman businesses, such as its capital markets division, were sold at the time of bankruptcy, but it still has a list of assets that it will sell to raise money to pay back creditors. For instance, it also still has its smaller Woodlands Commercial Bank to sell.

Lehman, Lazard and KBW declined to comment. The sources are anonymous because they were not authorized to speak publicly to the media.

The sale of Aurora has been expected since last year after Lehman made an agreement with regulators to put new money into the bank and agreed to either sell or liquidate it within 18 months. That sale was approved by Federal bankruptcy court in Manhattan in November, setting a May 2012 deadline.

Any proceeds from the sale will essentially go to pay back creditors, but will be offset partly by Lehman's transfer of about $535 million in cash and $336 million in mortgage loans to Aurora late in 2010.

Lehman may find some bidders interested only in parts of Aurora, such as the loan servicing portfolio, as opposed to the whole bank, two sources said.

Lehman's preference is for the sale of the whole company, but it might consider splitting the company depending on the bids it gets, these sources added.

(Reporting by Caroline Humer and Paritosh Bansal; editing by Robert MacMillan, Andre Grenon and Bernard Orr)

[Enterprising Investor]

Form 10-K:

http://sec.gov/Archives/edgar/data/1072806/000095012311031611/b84091e10vk.htm

[insomniac]

Yeah your probably right.. However I hardly think this bank or any other bank foreclosed on anyone who
WAS paying there mortgage.They just tried to expedite the mess and got slapped on the wrist for pushing through the paperwork. It's just a technical issue that will be ironed out in short order.

[h_man_investor]

Maybe this is why there is a delay in the dividend payment approval:

http://www.housingwire.com/2011/04/14/ots-issues-corrective-actions-against-aurora-everbank-onewest-bank-sovereign-bank

[h_man_investor]

I don't think it's peculiar since its exactly 90 days from the filing. My guess is that 90 days is the standard review period.

What I do know is that something is up. The last dividend authorization was approved very quickly and nothing has changed fundamentally over the past new months. So the application isn't for something as simple as a dividend payment. Its also is important to note that they waited until the 2nd to last day of the quarter to file.

I expect an announcement of some sort soon although I'm not sure if it will include the 1q dividend.

[insomniac]

H-man What do you make of the latest filing with the OTS?/ Im referring to the DECISION DATE being at the end of JUNE??? Is that simply policy , or is it unusual?? Thanks in Advance

[h_man_investor]

Most REIT preferreds (NLY, etc) are currently trading at current yields below 8% and above par value.

[Enterprising Investor]

Two main causes for non-convertibles.

(1) The current market interest (or dividend) rate for the issuer could be lower than when security was issued. Although not a preferred issue, the GMAC 6.75 percent Global Note due 12/01/14 now trades at about 105.50.

(2) Cumulative Preferred with multiple periods of unpaid dividends may sell in excess of par. For example, holders of TLSRP, a 12% Cumulative Exchangeable Redeemable Preferred Stock in $10 par, are owed a total of $103.9 million or $32.62 per share. The market price is about $21.00.

[insomniac]

Under what circumstances could a preferred sell above it;s stated certificate value if any????? Ie 25 bucks. Thanks in advance.

[Enterprising Investor]

Dividend received 1/14/11.

[Rockyp_cigar]

Does anyone know the ex-divi date ?

The record date was 12/31/2010 so presumably the ex-div was 2 business days before record date...i.e. 12/29/2010.

Has anyone received their EOSPN dividend ?

[insomniac]

Any news out there today????

[Enterprising Investor]

Nothing to do with faith.

Potential greater returns elsewhere. For me, there is an opportunity cost to waiting for the $25 liquidation value. If I was an income investor, I would enjoy $2.125 in dividends per year. I seek long-term capital gains in my work, but always seem to take short-term gains faster than expected.

I sold yesterday at $22. I was contemplating selling last week. The "gut" told me to wait. Good call. This also defers my tax bill into 2012.

[h_man_investor]

oh ye of little faith.

you will still get the dividend, though, because its payable the sh/h as of 12/31.

[Enterprising Investor]

I sold everything yesterday!

[h_man_investor]

big news- although it looks like they will need OTS approval for all dividends going forward.

[MrchntDeth]

EOSPN Declares dividend to shareholders of record December 31, 2010

"On December 30, 2010, the OTS provided a non-objection to the Bank permitting its operating subsidiary, the Corporation, to declare and pay the fourth quarter 2010 dividends to its shareholders . . . [a]ccordingly, the Board of Directors of the Corporation (the "Board of Directors") declared on December 31, 2010, a dividend payable on January 14, 2011, for the quarter ended December 31, 2010, to holders of record on December 31, 2010 of each of: (1) the Corporation's 8.50% Non-Cumulative Exchangeable Preferred Stock, Series D (the "Series D preferred stock"), in the amount of $0.53125 per share . . ."

http://biz.yahoo.com/e/110105/eospn8-k.html

EOSPN

[insomniac]

Great News !!! WTG

[h_man_investor]

And the hits keep coming- on December 21 Aurora put in a application for a capital distribution- presumably a EOSPN dividend.

Recall my comment that a 4th quarter 2008 dividend was approved in January of 2009 so there is plenty of time to get the approval if it hasnt happened already.

[h_man_investor]

public information- notice of the bond redemptions.

[insomniac]

Thanks H !!!

[56Chevy]

Hman...what is the source of your information? TY

[h_man_investor]

Aurora has redeemed $271mm bonds since 12/6 after not redeeming any bonds over the past 2 years. The transfer has happened.

Also, in January 2009, CCPCN declared their 1Q dividend on 1/14 going x-div on 1/20 for holders as of 12/31/08.

So a 1Q dividend is still possible!

[insomniac]

Good Volume today... Any news??

[h_man_investor]

not yet- lost interest when it shot up to the low teens. now that its settled down i should revisit.

[insomniac]

H man,.,., Do you have an opinion on
FBS-A ?? They are gonna be 6 divis in arrears at end of year.. Thanks in Advance