Industry observers have been following MortgageBrokers.com ever since it launched in 2005. It’s one of the only pure-play publicly traded mortgage brokers, and it happens to be a Canadian one.
As a result, the company’s latest earnings release was much anticipated. Shareholders had hoped the company would post good results, given it’s recent signings of new agents around the country. A lot of people also expected its earnings to re-invigorate the company’s stock price–which has been wading around $0.35 – $0.40 for six months.
Alas, MortgageBrokers.com’s earnings were released last week. They announced a $1,060,000 loss. The stock is still at $0.36 today.
In SEC filings the company also disclosed:
- It is “suspending its current expansion plans into the U.S. mortgage market until such time that the full economic effect of the sub-prime lending is known.”
- “The Company’s current Canadian operations did not perform as well as expected due to the slower than expected ramp up of the Company’s newly recruited mortgage agents.”
On the upside, the company did post it’s best quarterly revenues ever: $3.8 million. We’ll see if it can keep its expenses under control and post a profit in its next report (scheduled for late February 2008).
Full disclosure: It is CMT’s policy to disclose its associates’ ownership in any company that CMT writes about. As of November 21, 2007 CMT staff owned a total of 10,000 shares of MortgageBrokers.com. This article is the opinion of CMT only. It is not an endorsement and is for general information purposes. Do not rely on this information for investment decisions. Do your own in-depth research and/or get the advice of a qualified financial advisor before investing in any security.