Monday, November 20, 2006
Analyst out on MRU (UNCL)
Analysts commenting on UNCL's earnings report, released last week. Sanders Morris Harris notes that the greater than expected loss was attributable to higher expenses, particularly advertising costs, which does not concern the firm too much b/c these expenditures are necessary investments in building the brand. More importantly, the MyRichUncle brand is gaining appeal among students leading to increasing loan originations. Thanks to solid business in Oct and Nov, UNCL now has over $100m in private loans, which is enough to securitize. According to ThinkEquity mgmt said it plans to do its first securitization of approximately $120m in loans in the MarQ. Firm ests this securitization will take place early in C'07. Think introduces their F´08 EPS est of $0.28. Both SMH and Think continue to rate UNCL shares as a Buy with SMH tgt at $9.