Via blogs.marketwatch.com/greenberg:
BankUnited Financial (bkuna), best known for ARM loans in Florida, apparently has had it with critics. Here's what Raymond James analyst John Pandle, who rates the stock an underperform, told his clients today:
"BankUnited is hosting and analyst/investor meeting today and tomorrow. However, we were not invited to attend and executive management continues to ignore our phone calls and e-mail messages seeking information about several areas where we have fundamental concerns , including rapidly deteriorating asset quality, an acceleration of negative amortization growth on option ARM loans, lower loan sale gains, and subsiding margin expansion.
"Notably, a company representative informed us on Friday that the presentations will not be Webcast. While management's decision to exclude critics and limit access to the information presented may somehow satisfy the letter of the law as it relates to Regulation FD, it certainly violates the spirit of the law, in our view."
Could it be that BankUnited, whose operations are focused in South Florida -- and could be described as a residential version of Corus (cors), which lends to developers in Florida -- is in denial about the over-building? Or does it really think it won't be hurt by a glut of homes in its primary lending market? Don't know, because the company didn't respond to my email inquiries. (The person I needed to speak to wasn't in, but was available via email, I was told.)
But based on the company's last earnings release, it appears to be a little of both. According to the release:
"We have not changed our goal of growing the company, even though our industry is experiencing a cyclical downturn, particularly in the housing markets, which will cause decreasing asset production and rising levels of non-performing assets. To achieve our goals we are implementing a multi-step program. We will increase assets by entering new markets and creating and refining products. Enhanced asset-retention programs will reduce prepayments. In addition, we will continue to build our Florida franchise through additional branch expansion and growth in our retail and commercial customer bases while maintaining an emphasis on controlling our costs of funds and deposits."
Branch expansion in Florida. Now?
Reminds me of the kinds of things NovaStar (nfi) would say when people would ask how it would avert the sub-prime crunch. Always sounds better on paper.
$25.06 (02/27/07)
