Replies to post #119 on Sortis Holdings Inc. (SOHI)

[Lazarus]

Income may be doing fine but the stock just can't hold its gains.

Little wonder if you read their last report

They're hemorrhaging. Lost 3.8 million in 6 months and now they're down to just a little over $300k in cash.

I just looked at their last 2 filings. From March to June they lost $2,258,260 in shareholder equity. (feel free to verify and correct me).

[Lazarus]

To clarify for you. Lets say you have a company X that loans hard money at 12%

Company X is poorly managed and consistently looses money.

You go to company X and they arrange a hard money of $100k loan for you at 50% LTV at 12% interest only (first position) for 2 years.

(in other words you lend $100k of your moneyfor purchase of a home valued at $200k and the buyer puts $100k down -- and you get the first trust deed.)

So now, your principle is guaranteed because you carry the first trust deed at a 50% discount to market value.

The broker who arranged the loan will charge POINTS - typically 3 to 10 - so let say the broker charged 6 points. The broker's commission is then $6000. This is the actual money that goes INTO COMPANY X for the transaction. Now the broker/agent depending - is going to make between 50 to 80% of that commission. Whatever is left over goes to company X

IOW - they could have a thriving hard money loan business /fund but that does not necessarily translate to a thriving business.

These guys have obviously made some serious errors in judgement. They have burnt though millions with nothing to show for it.