Replies to post #263 on Impac Mortgage Holdings Inc (IMPM)

[Joe Stocks]

>>"Liquidation rights give preferred stockholders the book value of the company." <<

If that is the case, how are those rights exercised? That doesn't make sense.

The point I made earlier "worth 4.30, but not 4.45?"...
Dave, what I was getting at is that you talked about IMPHO being like a zero coupon bond. If you bought 100 shares you would spend $430. At 4.45 per share it would be $445., or just $15 difference. If one were looking as your theory goes at an eventual payout of $25 per share, or $2500 for 100 shares, the $15 difference on the $2055 gain ($2500 -$445= $2055) seems miniscule.

Obviously with issues like IMPHO and IMPHP on the pink sheets, pricing could be volatile with wide price swings. If one has conviction in the trade, and accepts the volatility, why not take the shares at the ask for just 15 cents more than the bid?

Another point. The way I look at it, between IMPHO and IMPHP there is probably only about 2 mil shares outstanding after the tender offer. Of those, probably only 680,000 are IMPHP shares. If IMH was courted ordered to pay back dividends on the IMPHP shares alone it would be $9.52mil. I would think IMH would have a good amount of incentive to settle with the IMPHP holders. I don't see the incentive with the IMPHO shareholders.

I would ask those that are buying IMPHO if they were a juror/judge, and saw that the required number of shareholders voted to accept the tender offer and terms that would be forced on all, why would you not rule in favor of the company?

Get in mind the IMPHO shareholders voted to approve;

-- make future dividends, if any, non-cumulative;

-- eliminate the restrictions on paying stock dividends on(they are talking about the common here), or
repurchasing, stock until preferred stock dividends are paid;

-- eliminate the right of preferred stockholders to elect two directors if the Company does not pay dividends for six or more quarters;

-- eliminate preferred stockholders' right to approve senior preferredstock; and

-- eliminate the prohibition of redeeming less than all shares of preferred stock if preferred dividends are not paid.