Value Microcaps Motherboard

[researcher59]

TMFZ +.20 to 3.30 another all time high. Volume is picking up nicely as well. This niche mortgage company grew explosively through 9 months. Trailing PE, fully taxed and diluted, is still only 6 even with 87% y/y revenue growth and 900% EPS growth through 9 months. EPS of .19 in Q3 and .41 through 9 months. I called management several weeks ago and they indicated that EPS typically gets stronger sequentially through the fiscal year. Could bode well for Q4, which was their strongest last year. I wouldn't expect mortgages applications to be strong in this season, but it could be their conservative accounting practices deferring income to year end. Also they'd like to move up to the AMEX or NasdaqSC this year. Trades at a deep discount to the sector. And while short term rates are moving higher, long term rates are actually down slightly from a year ago. Furthermore, their niche sector in sub-prime and Alt-A is less interest rate sensitive than the primary market. So I think fears of rising mortgage rates are overblown, particularly for this fast grower. Clearly TMFZ is gaining market share, and hopefully that trend will continue. One of my larger microcap holdings.