Impac Mortgage Holdings Inc (IMPM)

[dpsimswm]

Here's something I posted to tumblr yesterday.

http://simsonfinance.tumblr.com/post/118963465684/a-simple-solution-for-impac-preferred-imh

My belief, and its something that I have believed for the past two years as I bought IMPHO, is that management is doing their best to grow the business.

In 2009, they did their best to save the business and they succeeded. I also believe that management sees IMPHP and IMPHO in a similar light.

In order to take the business to the next level, they need to unlock the capital markets. And to do that, the preferred holders need to participate in the profitability of the business. This is not a one-sided transaction.

On one side, the company's management provides POSITIVE GOODWILL. On the other side, investors provide TRUST. Trust and goodwill are the currencies. Once management wins back our trust, the capital markets unlock. They can then issue new securities and they don't need to rely on cash injections from an insider.