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So, I guess what I'm trying to say is, why on earth did Metro Bank buy loans from a company that specialises in buying up distressed loans from other banks.
and it still has circa £600m of them on it's books.
Perhaps they were buying in loan growth and profits, but at what risk.
Well, a little more research....
Cerberus are owned by Promontoria, who specialise in buying up 'non-performing' home loans. Generally known as 'Vulture Funds'.
They seem to be pretty active in buying up 'non-performing' loans from banks in the UK and Ireland.
We now move to the USA, where we discover that Promontoria, and Cerberus NV are owned by
A specialist in distressed investing........ aka a vulture fund.
At least we now know why the purchase of one tranche has caused so much trouble for Metro (they were perhaps distressed loans, more distressed than they had accounted for).
But, they still have over £500m of bought in mortgages from Cerberus, or it's subsidiaries on the books. Don't they?
They made two buys of loans from Cerberus (or it's subsidiaries). One of £596M, and the other of £523M.
Do your own research, because I do.
MTRO August 2019
• £460mln cap 172mln shares in issue
• Share price all time lows 270p
• Short tracker website showed shorts peaked in Q2 at 13% and now down to 6% in Q3 but this simply may reflect that MTRO used to have c.100mln shares but added 75mln in the share fund raise in May 2019
• Recent £350mln share placing May 2019 at 500p, founder and chairman Vernon Hill took £5mln
• Book value EST £1.7bln (£9.00) and discount that by half still gives a £4.50p target
• Fee income alone £320mln
• Net deposit INFLOWS of £700mln 8 weeks prior to 24th July results
• Loans of up to£1.7bln up for sale as of June 2019 response to press ( sold last ones for £521mln in July 2019)
• Shorts now 6% + which is one of top 10 shorted stocks alongside KIER 11%
• Affected by banking macro sector and fears of recession
• ECB discussing banking stimulus in Sept
• FTSE currently 7000 down from 7700 Q2 highs
"Argue the case for an investment here..............go for it."
How about I start getting into why they started to buy loan portfolios from other organisations.....both of which include loans securitised by Cerberus (or by comapnies wholly owned by Cerberus).
You may be interested to note that Cerberus were responsibile for securitising £6.1 billion of Northern Rocks loan portfolio in 2015.
Did MTRO pick up the 'unwanted' buy-to-let loans?
...and the RNSs that mention the purchases
Please note that the mention of 'CERH RSMC Sub B.V. ' is the same organisation as
'CERH RSMC Sub BV is a group company of Cerberus European Residential Holdings'
The also own Capital Home Loans, the other source of mortgages mentioned.
...and the the source of the above connections.
...and the second tranche
Cerberus European Residential Holdings B.V.
DYOR, because I am doing mine.....
Why did a company that was apparently only interested in organic growth buying mortgage portfolios anyway, let alone buying up portfolios of buy-to-let mortgages.
Perhaps they could not generate enough mortgage sales internally?
The wonders of research.
Please feel free to discuss, or you could just call me liar, liar, pants on fire......
“...rolling out branches is burning through cash, hence several cash calls, equals dilution.”
It’s called investing. Not like they are spending it on paid posters.
Posting like yoda, you are illnetabuck
"The only issue I can see that something is being hidden from shareholder e.g an accounting hole or a massive fine for the accounting error coming."
I do not think that they are hiding anything.
The issue here is a failed gimmick laden business model, rolling out branches is burning through cash, hence several cash calls, equals dilution.
Add to that the very low earnings and the accounting error scaring off business customer deposits (not protected like consumers 'FANS' are). Which have not returned, the recent increase is clearly retail customer related, as stated in the figures.
MTRO has a lot of problems, most if not all are the responsibility of management, time for Vernon, wife and doggie to go.
Shorters see this, and are perhaps 'betting on zero'.
Feel free to attack me, but how about doing it with facts and not Bovine Scat.
Argue the case for an investment here..............go for it.
"Surely it’s about time Deepvaluehunter is right about some sort of bounce on this? "
Deepvaluehunter is cuddothisnow!
it's what, a month or so old account and the only thing it does is pump MTRO.
Work it out......
Yes, we know that Mcap is the same as Placement and a bit more. The only issue I can see that something is being hidden from shareholder e.g an accounting hole or a massive fine for the accounting error coming.
There is alot of talk from Cud about an email he received by Big V that something big was coming last week. But nothing BIG has happened, just more falls.
I have CUD this question on here on Friday, but no reply.
Before I get flack, I am seriously loaded up on Metro.
Surely it’s about time Deepvaluehunter is right about some sort of bounce on this? Been predicting the rise all the way down whilst lowering target.
With shorts increasing don’t you think that perhaps these guys know what they’re doing and are increasing for a reason?
Time to sell, time to buy? Seems like a lot of emotional investors here who have bought in. What would Benjamin Graham say.
Illbetabuck...... I'll bet many bucks your not even invested in Metro just another punk gobbling off, spreading fear and thinking you can will shorting further..... Well I guess the general consensus is not many people like you hear anf yes you'd free to post **** but everyone will just stop responding to you and your fun will come to an end.... So jog on!
I said that you are a fraud not that you’ve committed a fraud. I stand by that - why are you here ? 1200 posts on TCG in a month - why are you here. Who is paying you to incessantly drip ? As a human you are a FRAUD..
"It’s not important whether you’re positive or negative, it’s about being honest. You’re a fraud ILLbetabuck. "
Please provide evidence of fraud.....and be very careful how you answer that, because your last post has been reported.
Yes, I have also seen the numbers, and if it were not for the cash burn rate in opening branches (and unforced errors), I might agree.
All that said, if the numbers are so good, and the shorts are all over it, why on earth aren't the wealthy buddies of Vernon loading up and burning those shorters?
Wonderful banter and very entertaining and I thank you all for it. However, I am heavily exposed here and remain very positive because of a number of different financial instruments of measurement. So I’m most certainly in the rampers camp, whilst evaluating all the facts I can evaluate for my own risk/reward benefit. :-)
'You may only view analytics about your own Tweets.'
Why posts links that cannot be followed?
'Metro Bank going great'?
Last March the share price was over £40 - over 90 percent of shareholder value has been destroyed despite the recent fundraise at £5 per share and associated dilution. And, the mcap is now only a fraction over what they raised in the cash call.
If you think that this is a recovery share then good luck to you but, the market certainly does not think that 'Metro Bank going great'.
"ILLbetabuck - your posting and your opinions are irrelevant - you are being paid to undermine sentiment on this board.."
Surely it's the share price that is undermining sentiment.
Ah, just realised.....
.....the forum is a Metro Bank FAN club.
No criticism of the company allowed?
...well if you want a FAN club start one on Facebook. This is an investment forum.
This your twitter, why do I know this, because you were 'insert appropriate word' enough to post a link that includes the analytics section.
ILLbetabuck - your posting and your opinions are irrelevant - you are being paid to undermine sentiment on this board..
Not playing with a straight bat.. !!!!!