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jaybird249

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jaybird249

Re: None

Sunday, 10/05/2008 5:37:23 PM

Sunday, October 05, 2008 5:37:23 PM

Post# of 33753
AGM: This feature of bailout is HUGE:
-Allow companies to carry back losses arising in tax years ending in 2007, 2008, or 2009 back five years, generating a tax refund and immediate capital.

That means AGM can carry back their Lehman and Freddie Mac losses immediately and get around $30 MM tax refund.
This combined with the $65 MM in new capital puts AGM liquidity back to where it was when it was $30.

The after tax effect of the writeoffs on book value will be about $7 per share. So I think AGM should still trade at least $20 but I will settle for $15 as a quick double.
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