The $DFH proposed merger of $BZH because the company doesn’t have the cash. They are borrowing a couple hundred million from a private equity firm that likely charges above usual interest rate. They probably won’t survive. The inventory must be worth only a fraction.
$FICO is reporting next week. The stock could fall hard with a conversation on the call about competition from VantageScore. 800 is possible. The valuation reflects the monopoly that is crumbling.
If the company pushes the envelope and makes more potentially risky loans to consumers with deteriorating credit scoring, the defaults will follow in the following two or three quarters. The CAF will suffer as it did this quarter. Reserves won’t cover losses easily
$KMX reported a weak quarter yesterday. There are several topics to address among the most important relates to auto originations. KMX, and other dealerships making loans directly to their customers have tough choices to make. If they raise the lending standards sales fall
@ItsTheEnforcer Pam Bondi fired. Todd Blanche is in. At CPAC last week Blanche boasted that every DOJ and FBI employee who worked on the criminal investigations into Trump have been fired resigned or early retirement putting 200 people at the DOJ out of work. More crime coming
Pam Bondi fired. Todd Blanche is in. At CPAC last week Blanche boasted that every DOJ and FBI employee who worked on the criminal investigations into Trump have been fired resigned or early retirement putting 200 people at the DOJ out of work.More crime is worse for the economy
Channel checks indicate new car sales could be down 10% in the first quarter with $GM at the top of the list. The demand is there but the credit is not. Most consumers are waiting for interest rates to drop. But what if they don’t? Interest rates are irrelevant in truth.