Luminent Mtg Cap Inc (fka LUMC)

[off-floor-trader]

While the lack of liquidity in the market with regards to buying paper has forced LUM to liquidate a portion of its finer assets to meet margin calls, looking at the company profile in which it states:

Investors should distinguish our business model from that of a subprime originator. We do not acquire subprime mortgage loans. We are not a direct originator of mortgage loans and therefore we are not subject to "early payment default" claims. We acquire mortgage loans exclusively from well-capitalized originators, who meet our standards for financial and operational quality.

Suggests the assets they still hold to be viable and the Fed buying (backing) paper could prove promising if the company meets or exceeds expected earnings - current consensus is (.11) to (.12) and a favorable expectation with regards to whethering near term concers should prove favorable....IMO.

We'll see......