Post edited 9:43 am – March 24, 2010 by zehua
Nice job. I looked at their 10K. They said that "In 2009,
nonperforming assets with a carrying value of $34.0 million were repaid or sold for total proceeds of $33.4 million."
This means even if the loans are default, they don't lose too much money, which is good news.
I dialed the number listed on the google finance website, and the lady answering the phone has no idea what Investors relations is. I said I wanted to talk to investors relations, and she said she didn't know what this is.
One of my few concerns is that they have a small fraction of corporate bonds that are C+ credit ratings. I think banks should be conservative and only buy A+ bonds from the government, unless it is a trading department that focuses on junk bonds, which I don't think is the situation for IBCA.
The other concern is their cash position. It is only 8 millions compared with 54 millions for last year. I can see that they repaid a huge amount of debt back to their credit facility, which is good, and will reduce their interest expense, but will this created liquidity problems? Are they able to easily pull money out of that credit facility when they need cash again?
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