Replies to post #1054978 on BB's Stock Haven

[pipedream]

Good job, Im wondering why AHM didn't completely colapse once the BK news hit. Still holding up in AH too.

[wickerman]

JSDA yep I had a good scalp from 14.85 - 15.25 but no way holding anything into earnings, this is the second straight time that the stock ran up during the day and tanked ah on bad earnings

[wickerman]

** LOL ** FBR Analyst Cuts AHM Target to Zero
Thursday August 2, 4:16 pm ET
Friedman Billings Ramsey Analyst Cuts Price Target on American Home Mortgage to Zero


NEW YORK (AP) -- A Friedman Billings Ramsey analyst on Thursday said American Home Mortgage Investment Corp.'s stock is probably worthless.
Friedman Billings Ramsey analyst Paul J. Miller Jr. cut his price target on the Melville, N.Y.-based mortgage lender's shares to zero from $3. American Home Mortgage Investment specialized in home equity and so-called Alt-A loans, the latter of which refers to loans in which borrowers do not have to document their income and assets.

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The action followed the company's announcement earlier this week that it may need to liquidate to placate its lenders, who want their money back because the loans in the company's portfolio have rapidly lost their value.

And that disclosure, in turn, followed a news release in which the company said it would not pay a 70 cent per share dividend scheduled to be distributed that day. American Home Mortgage Investment said it needs to keep its cash because it is not sure how bad the conditions in its industry will become.

American Home Mortgage Investment's stock, which closed last year higher than $35, plunged to barely more than a dollar on Tuesday. The shares have lost roughly 95 percent of their value this year and on Wednesday sank as low as 85 cents.

Miller said the next announcement the company will make is that it has sold its loans or pieces of itself. He does not expect any of the proceeds of the sale to trickle to shareholders, and ultimately anyone holding the stock now will recover nothing from the company.

Shares of American Home Mortgage investment gained 85 cents, or 57.4 percent, to $2.33 in afternoon trading Thursday.

Miller is not the only Wall Street analyst with a zero price target on American Home Mortgage Investment. Keefe, Bruyette & Woods analyst Bose George earlier this week cut his price target to zero and Deutsche Bank analyst Stephen Laws suspended his target.

RBC Capital Markets analyst James Ackor attaches a caveat to his $2 price target that the shares are as likely to be worthless as not.