Impac Mortgage Holdings Inc (IMPM)

[dpsimswm]

This company is going to be very profitable very soon.
1. Macquarie is buying all non-QM loans.
2. 3rd Q originations doubled.
3. They bought Cash Call, which should double originations vs 3rd Q.
4. The low rates in Europe and abroad are going to increase the foreign appetite for US debt and bonds. This will help the Fed to exit QE, but will also help subprime mortgage lending get a jumpstart in the US.
5. Mortgage rates dropped below 4% this Q.

They paid $10 million cash plus 500,000 shares of stock for Cash Call. The 10Q from the 3rd Q said they had $13 million cash on hand. So, do the math. They had tons of cash flow this Q.