FirstFed Financial Corporation (fka FFEDQ)

[eddy2]

It will break down. The thing that I find interesting with this stock is the accounting and how aggressive they are in righting down the bad debt or what they figure is bad debt. Makes a big mess of the income statement and the fact they pay of senior debt and turn around borrow more and pay that off and in the mean time with huge interest charges going toward the income statement never mind the bad debt charges layed out in note five of the financial statement in the 10k.

I'm not an accountant but it does seem over aggressive. The other bit about the 4 million in assets and having a 150 million in liabilities filed in the BK statements well being that the deal of the sale has not been mentioned the way I'm figuring is that they sold the assets through a reverse merger and First federal owns four million in shares on the deal and holding them as an asset.that is wild speculation on my part and maybe being to hopeful. They did say that One West was still a private company unless the deal is not finalized and that is why we don't know the details.

The aggressive accounting could of been used to ward of possible law suits should this thing go in chapter 7 or in many cases they will use stock to convert debt regardless company revenues have droped over 30% from 2006 and even applying more conservative accounting it dosn't give much wiggle room for them to make a profit.


I don't believe the companies assets were ever marked to market and that could of been another thing that could of happened and if so then maybe all they got was four million dollars and all the debt for the sale of the company. That is not good for the ones still holding.

For me I'm waiting untill they get through this. It is better to be late to a party and making sure there is a party to go too then to be early and have no party at all and loose all your capital.