Quote:
Originally Posted by npg
PE of 6, PB of 0.8???? Yummy
However: "Delta Financial originates, acquires, sells, and services home equity loans. The company's clients are individuals who have impaired or limited credit profiles and they typically have substantial equity in their homes."
Of course, this is strongly out of favor now. Apart from an endorsement from Mr Pabrai, what has this company got over their competitors that make it a better investment?
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Summary of DELTA FINANCIAL CORP - Yahoo! Finance
DFC | Value Investing News
Looks like one-on-one deal between company and Pabrai. Already an investor, it appears he gave them funds when they needed it and the concessions to him were probably less draconian than the alternatives. Also looks like there's been dilution, but that only hurts if you're
already a shareholder.
There might be a lot of upside in DSF, but I'm already in CSE and I'd rather find a solid, cheap bank or two. Also looking at a beaten down mortgage insurer, MGIC (MTG).