Banking, finance, and taxes
Accredited Home Lenders, Maybe Not So Accredited (LEND, AHM)
Published:
Accredited Home Lenders Holding Co. (NASDAQ:LEND) is in trouble this morning. Shares were down 30% in pre-market activity after an SEC Filing from the company warned of solvency issues, although the trading has improved a bit since then. The company even issued a ‘going concern’ note on itself. Apparently the company is worried that after the debacle at American Home Mortgage (NYSE:AHM), creditors and lenders may place margin calls on it as values of the underlying mortgages come under more and more questions. Unfortunately it can have these margin calls on a one-day notice. This wouldn’t be the first margin call it ever received, but things have deteriorated further and finding firms that are willing to be white knights or that can come to aid is nearly impossible right now if you are a lender in the soup.
Lone Star Funds has a buyout offer for Accredited Home Lenders, but the obvious fear is that it will either back out entirely or that it will take the juice out of the buyout. The company is also trying to renegotiate terms to avoid defaulting and avoid a liquidity crunch. It is also now delinquent in SEC filings. Accredited Home Lenders shares are down over 20% to just over $6.25. Its 52-week trading range is $3.77 to $47.82.
How would you like to own that at $40+ and be wondering if the company can make it back up there? You know that happened to some. Ouch.
Jon C. Ogg
August 2, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
Travel Cards Are Getting Too Good To Ignore
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
