posted
Closed at .021, up 23.53% with .022 on the ask and a HOD at .0215 on nearly 2 million in volume!
Posts: 74 | From: USA | Registered: Sep 2005
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posted
Interestingly, NMKT and SFNN have very comparable financial numbers (and even share structers too) and NMKT is trading at more than 10 times the pps of SFNN -- just a clue into how great the upside the potential is here in SFNN!!!
.021 on the ask! Great entry point! Financials and press release by tomorrow!
Posts: 74 | From: USA | Registered: Sep 2005
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quote:Originally posted by RichBy26: Silver, the 10Q is due out tomorrow? Is that taking into account the extension they filed?
Yes. They have 5 business days to post their 10QSB from the 11/14/2006 date of their NT-10Q filing. Furthermore, the CEO asserted that the 10QSB along with a press release will be made on or before the alloted time of 11/21/2006. That's tomorrow.
I'm amazed that .0195 is on the ask right now! That should not last long! Posts: 74 | From: USA | Registered: Sep 2005
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posted
I have tried calling the CEO a couple of times but he has been on the phone all morning. Do you know the share structure? Pink sheets shows it as "not available". I agree that .0195 is looking very attractive, but I'm a little concerned that there is selling going on right before the release of the financials. Normally that is a very bearish sign.
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posted
After reading their last 10K, I have learned some helpful info. I still was not able to find the share structure of the company but they did issue lots of shares for most of their acquisitions. They have total assets valued at $70 million. Their expense's however out weigh their net income and profits by $3 million, so they are not yet profitable. Overall it looks attractive at these levels, although the current price decline and heavy volume are normally signs of a selloff coming post 10Q, that is my experience anyway.
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posted
Silver, Homer, are you guys still in this? Steady price decline continues. I have been watching this for a week and was really hoping to get in before this really took off, but it's not looking good. Hopefully they release good numbers and forward guidance in their PR
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quote:Originally posted by RichBy26: After reading their last 10K, I have learned some helpful info. I still was not able to find the share structure of the company but they did issue lots of shares for most of their acquisitions. They have total assets valued at $70 million. Their expense's however out weigh their net income and profits by $3 million, so they are not yet profitable. Overall it looks attractive at these levels, although the current price decline and heavy volume are normally signs of a selloff coming post 10Q, that is my experience anyway.
I hear you, but the majority of trades today have been at the ask, and I think the MM's (plus shareholder indecision) are extracting and accummulating shares for the likely and imminent runup...
According to their last 10Q, the number of outstanding shares stood at around 99 million (as of June-2006). They did file an SB-2 in July-2006 to potentially add up to 94 million shares underlying restricted and secured convertible notes in the amount of $1.5 million (to collaterlize that sum of money borrowed from a group of investors). According to the same 10Q, the net income was positive: "We had a net income of $1,977,262 for the quarter ended June 30, 2006 compared to net loss of $5,627,196 for the six months ended June 30, 2005"
The company expects to show $30 million in revenue this year. This stock is definitely undervalued and deserves to be trading at nothing less than 0.10/share.
Posts: 74 | From: USA | Registered: Sep 2005
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quote:Originally posted by RichBy26: Silver, Homer, are you guys still in this? Steady price decline continues. I have been watching this for a week and was really hoping to get in before this really took off, but it's not looking good. Hopefully they release good numbers and forward guidance in their PR
I'm definitely still in this! I'm looking forward to the 10QSB and the press realease.
.019 x .0195, 9.5% down... we will be moving up soon!
Posts: 74 | From: USA | Registered: Sep 2005
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This is normal for this stock to trade in the red, but usually there is an EOD buying pressure that makes it close green. Hopefully we can continue that pattern until the 10QSB is released and shows the true value of the company...Everything still looks good.
My guess today for people dumping was because there were a couple other better plays out there. BANY was one of them.
019x0195 1x1
Posts: 3026 | From: Chicago | Registered: Oct 2005
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quote:Originally posted by trade2win: Rich, good news coming?
Yes, Mike Barron seemed excited about the company and said that they were moving forward fast. The numbers Silver reported on the first post of this thread were correct he said. Assets of $85 million+. He did say that a PR would accompany the 10Q so I'm assuming it will have forward looking guidance. I'm in with 225K
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quote:Originally posted by trade2win: Rich, good news coming?
Yes, Mike Barron seemed excited about the company and said that they were moving forward fast. The numbers Silver reported on the first post of this thread were correct he said. Assets of $70 million+. He did say that a PR would accompany the 10Q so I'm assuming it will have forward looking guidance. I'm in with 225K
Awesome! Hopefully they'll file their report soon so we can get the momo going.
Thanks for the update Rich!
019x0207 1x1 This spread sucks...
Posts: 3026 | From: Chicago | Registered: Oct 2005
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posted
Oh sure, they drop it down to fill that guys 200K buy, but they wouldn't fill me that low... Who sold that 300K chunk at .0185? I hope Mike was being strait with me, I don't like the selling I'm seeing today, normally a bearish sign of things to come. Hopefully we get the 10Q and PR before the bell, and lets hope it is what they say it will be!
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quote:Originally posted by RichBy26: Oh sure, they drop it down to fill that guys 200K buy, but they wouldn't fill me that low... Who sold that 300K chunk at .0185? I hope Mike was being strait with me, I don't like the selling I'm seeing today, normally a bearish sign of things to come. Hopefully we get the 10Q and PR before the bell, and lets hope it is what they say it will be!
Yup, this was an awful day. The close was pathetic, closing at the LOD. Geez, not a good sign...
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion of the financial condition and results of operations of the Company should be read in conjunction with the financial statements and the related notes thereto included elsewhere in this document. This discussion contains, in addition to historical information, forward-looking statements that involve risks and uncertainties. The Company's actual results could differ materially from the results discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below, as well as those discussed below under Factors Affecting Future Operating Results. The Company disclaims any obligation to update information contained in any forward- looking statement.
Overview
Shearson Financial Network Inc. SFN was incorporated in Las Vegas, Nevada in July 2000, and is the parent to two primary operating divisions, Shearson Home Loans and Real Property Technologies (RPT). Shearson Home Loans (SHL) is a direct-to-consumer mortgage broker and banker with revenues derived primarily from origination commissions and resale of whole loans earned on the closing of first and second mortgages on single-family residences. SHL currently employs over 500 people which are residential mortgage and/or real estate brokerage professionals. The Company is a consolidator of mortgage brokerages and integrates the brokerage companies into the Shearson Home Loans network and then banks the mortgages through its mortgage banking unit. The Company plans to continue its growth strategy through the acquisition and affiliation of mortgage brokerage firms who do not currently bank their own production. By providing more efficient services to these smaller firms, SHL can accrete loan volume without having to "organically" grow the business. Banking of the accreted loan volume generates windfall revenue to the Company. Thus the rate of growth of SHL's revenue stream is dramatically accelerated. The Company has the infrastructure, systems, and operational management necessary to properly integrate these and many more acquisitions in order to establish a countywide network. The Company's business plan is focused on the integration of over 200 mortgage brokerage offices into the SHEARSON mortgage network.
RPT is a leading real estate information company with headquarters in New York. RPT reported revenues of approximately $24 million for fiscal year 2005 with pre tax profits of nearly four million dollars ($4,000,000) and has in excess of 200 employees. RPT operates within the Shearson Financial Network as a separate data network. RPT provides a steady revenue stream and profitability which the company looks to mitigate the effects of interest rate fluctuations in the mortgage lending market. The database has numerous marketing advantages for our mortgage operations.
Results of Operations
Three Months Ended September 30, 2006 Compared to Three Months Ended September 30, 2005
The acquisitions of Real Property Technologies Inc. and the asset purchase of certain assets of eHome Credit occurred in June of 2006 and therefore the company is reporting three months of financial activity for each of these companies for the three month reporting period. The acquisition of Allstate Funding Corp occurred on July 27, 2006 and the financials represents two months of operations.
Net revenues from origination and/or sale of loans increased 90.8% or $2.3 million, to $4.8 million for the quarter ended September 30, 2006 from $2.5 million for the quarter ended September 30, 2005. The increase in revenues is directly related to the Company's acquisitions of Real Properties Technologies, Inc., Allstate Funding Corp. and eHome Credit Corp., ("Acquired Companies") of which revenues totaled approximately $4.6 million. Data base revenue income from RPT was $5.4 million for the quarter ended September 30, 2006.
Gross profit increased $2.3 million or 296% to $3.1 million for the quarter ended June 30, 2006 from $793,785 for the quarter ended June 30, 2005. All of the increase is related to the Company's acquisitions of Real Properties Technologies, Inc., Continental Home Loans and eHome Credit Corp.
Table of Contents
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
Salary, wages and payroll taxes increased $3.5 million or 226%, from $939,000 for the quarter ended September 30, 2005, to $4.5 million for the quarter ended September 30, 2006. Approximately $4.1 million related to the acquired Companies, offset by a decrease of $600,000 related to a reduction in work force. Selling , general administrative ("SGA") fees increased $888,000 to $1.9 million from $972,000 for the quarter ended September 30, 2005. The acquired companies increased SGA by $1.6 million. Professional fees increased $859,000 to $1.6 million from $ 744,000 for the quarter ended September 30, 2005. The increase in professional fees is related to the costs of the acquisitions and costs of debt placement.
Total operating expenses increased 184.0% or $5.2 million, to $8.1 million for the quarter ended September 30, 2006 from $2.8 million, for the quarter ended September 30, 2005. The increase of $5.8 million is related to the acquired companies and is offset by a decrease in expenses of $600,000.
For the quarter ended September 30, 2006, one note totaling approximately $2.7 million between Club Vista Holdings, Inc and the Company was recorded as forgiven, of which Club Vista recorded this debt forgiveness on December 31, 2005. The Company incurred costs associated with the debt discount amortization related to the beneficial conversion features on three of its notes in the amount of $1,244,616 for the three months ended September 30, 2005, as compared to $72,993 for the three months ended September 30, 2006.
We had a net income of $2.5 million for the quarter ended September 30, 2006 compared to net loss of $1.9 million for the same quarter of 2005. The increase in income is related to an increase in net operating income of $992,000 related to the Company's acquisitions $2.7 million forgiveness of notes payable, offset by the $415,000 charged to debt discount expense and interest of $404,768 for the September 30, 2005 quarter.
Nine Months Ended September 30, 2006 Compared to Nine Months Ended September 30, 2005
Net revenues from origination and/or sale of loans increased 5% or $313,000, to $6.6 million for the nine months ended September 30, 2006 from $6.3 million for the nine months ended September 30, 2005. The increase in revenues is directly related to the Company's acquisitions of Allstate Funding Corp and eHome Credit Corp., ("Acquired Companies") of which revenues totaled approximately $5.7 million, offset by a decrease in revenues due to the sale of Ocean West of which attributed to $5.0 million. Revenues from RPT, representing income from database sources contributed $7.4 million to totaled revenues.
Gross profit increased 189.3% or $7.1 million, to $10.9 million for the nine months ended September 30, 2006 from $3.8 million for the nine months ended September 30, 2005. The increase is related to the Company's acquisitions of Real Properties Technologies, Inc., which attributed to $6.5 million.
Salary, wages and payroll taxes increased 254.7% or $5.5 million, from $2.2 million for the nine months ended September 30, 2005, to $7.6 million for the nine months ended September 30, 2006. Approximately $5.8 million related to the acquired Companies. Selling, general administrative ("SGA") fees decreased 29.1% or $1.0 million, to $2.7 million from $3.8 million for the nine months ended September 30, 2005. The acquired companies increased SGA by $2.0 million offset by a decrease in expenses from the sale of Ocean West of approximately $3.0 million. Professional fees increased 155% or $1.9 million to $3.3 million from $1.4 million for the nine months ended September 30, 2005. The increase in professional fees is related to the costs of the acquisitions and costs associated with debt placement.
Total operating expenses increased 77.5% or $6.1 million, to $14.0 million for the nine months ended September 30, 2006 from $7.9 million, for the nine months ended September 30, 2005. The increase of $8.0 million is related to the acquired companies and is offset by a decrease in expenses from the sale of Ocean West.
For the nine months ended September 30, 2006, three notes totaling $7.8 million between Club Vista Holdings, Inc and the Company were forgiven. The Company incurred costs associated with the debt discount amortization related to the beneficial conversion features on three of its notes in the amount of $2.9 million for the nine months ended September 30, 2005, as compared to $72,993 for two notes, for the nine months ended September 30, 2006.
Table of Contents
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
We had a net income of $4,450,000 for the nine months ended September 30, 2006 compared to net loss of $7,558,000 for the nine months ended September 30, 2005. The increase in income is related to $7.8 million forgiveness of notes payable, $2.0 million of net income from its acquisitions offset by the $2.5 million charged to debt discount expense and a loss of income associated with Ocean West, for the nine months ended September 30, 2006.
Liquidity and Capital Resources
Liquidity is the ability of a company to generate funds to support asset growth, satisfy disbursement needs, maintain reserve requirements and otherwise operate on an ongoing basis. If our loan volume were to increase too rapidly, we believe the increase could have a severe impact on our liquidity. Our warehouse credit facilities limit the amount that may be advanced on each loan funded. Therefore, cash must be used to fund the additional dollars needed to close escrow. Thus, it is crucial that we closely monitor our loan volume.
During the first nine months of fiscal 2006 and 2005 we had net cash (used in) provided by operating activities of ($49.4 million) and $1.4 million, respectively. The primary sources of net cash used in operating activities was stock based expenses of $5.2 million, forgiveness of debt of $7.8 million, debt discount expense of $72,933, increase in accounts receivable of $5.4 million, Increase of mortgage loans held for sale of $31.3 million, increase in unamortized debt discount of $927,000, increase in prepaid expenses of $953,124, increase in goodwill of $12.9 million, decrease in accounts payable of $500,638 and an increase in interest payable of $167,126. The primary sources of net cash provided by operating activities was a decrease in receivables from loan sold of $3.6 million, debt discount expense of $2.9 million relating primarily to beneficial conversion debt discount, decrease accounts payable of $170,574, decrease in other assets of 35,112, stock based expenses of $2.1 million, increase in prepaid expenses of 110,299, increase in accounts receivable of $115,922, increase in minority shareholder interest of $42,165, increase in stock subscription payable of $82,150 and a decrease in interest payable of $6,396 for the nine month period ending September 30, 2005. As investors purchase loans, the amounts advanced for such loans through the warehouse lines of credit are paid. At that time, the receivables are cleared and the cash deposited in our operating account. These accounts vary significantly depending upon where the bulk of the loans are in the process of funding and selling.
Net cash used for investing activities during the first nine months of fiscal 2006 was $25.4 million primarily related to fixed assets purchased by acquisitions, which occurred during the period. Net cash used for investing activities during the first nine months of fiscal 2005 was $16,733 which was attributable to the purchase of property and equipment.
Net cash provided by financing activities for the nine months ended September 30, 2006 was $76.2 million. The consisted of $28.8 million on advances from lines of credit, proceeds related to related notes payable of $40,550, proceeds of notes payable of $1.4 million, payments of notes payable of $450,000 and issuance of preferred stock of $44.3 million. Net cash provided by financing activities for the nine months ended September 30, 2005 was $1.5 million. This consisted primarily of net payments under the warehouse lines of credit of $1.7 million, net payments of notes payable of $13,252, proceeds of notes payable related party of $250,000, issuance of common stock of $29,655, as well as dividends paid of $69,481.
Regulatory Trends
The regulatory environments in which we operate have an impact on the activities in which we may engage, how the activities may be carried out and the profitability of those activities. Therefore, changes to laws, regulations or regulatory policies can affect whether and to what extent we are able to operate profitably. For example, proposed state and federal legislation targeted at predatory lending could have the unintended consequence of raising the cost or otherwise reducing the availability of mortgage credit for those potential borrowers with less than prime-quality credit histories, thereby resulting in a reduction of otherwise legitimate sub-prime lending opportunities.
Forward-Looking Statements
Statements contained in this Form 10-QSB that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In addition, words such as "believes," "anticipates," "expects" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements or events, or timing of events, to differ materially from any future results, performance or achievements or events, or timing of events, expressed or implied by such forward-looking statements. We cannot assure that we will be able to anticipate or respond timely to the changes that could adversely affect our operating results in one or more fiscal quarters. Results of operations in any past period should not be considered indicative of results to be expected in future periods. Fluctuations in operating results may result in fluctuations in the price of our securities.
In the event we need to raise additional financing, there can be no assurance that any such financing will be available on acceptable terms. If such financing is not available on satisfactory terms, we may be unable to expand or continue our business as desired and operating results may be adversely affected. Debt financing will increase expenses and must be repaid regardless of operating results. Equity financing could result in dilution to existing stockholders.
Some of the more prominent known risks and uncertainties of our business are set forth below. However, this section does not discuss all possible risks and uncertainties to which we are is subject, nor can it be assumed that there are not other risks and uncertainties which may be more significant.
· Our losses from period to period;
· Our failure to continue to be an approved FHA mortgagee;
· Our dependence on the warehouse lines of credit which has been reduced ;
· Our need for additional funding sources so that our ability to originate and fund loans is not impaired and
· Our ability to compete with banks and other mortgage lenders that are significantly larger.
Posts: 3026 | From: Chicago | Registered: Oct 2005
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posted
that's the one I was reading Homer, I like to see the whole picture. I'll give my take of things a little later, still digesting info and have to get some things done before digging any further. Over all I like what they are accomplishing, only negative I see is share increase due to acquisitions, but that is not really a factor because those acquisitions are bringing in lots of $$$. If they PR the highlights we could really take off tomorrow!
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quote:Originally posted by trade2win: What is the summary? good or bad?
I haven't had a chance to read it all the way through, but what I glanced over, I like so far. The OS is higher than I thought, but they are making $$.
Something to note 'We had a net income of $4,450,000 for the nine months ended September 30, 2006 compared to net loss of $7,558,000 for the nine months ended September 30, 2005.' Huge turn around!
As Rich stated, if they PR any of this stuff tomorrow, we should have a nice day.
Posts: 3026 | From: Chicago | Registered: Oct 2005
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posted
After reading the entire 10Q I focused on the huge turn around the company had done in the last 12 months. This leads me to believe they are now capable of producing tremendous income, revenue and profit. Like Homer and I posted earlier, if they PR the highlights and the turn around we should see lots of green.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations The following discussion of the financial condition and results of operations of the Company should be read in conjunction with the financial statements and the related notes thereto included elsewhere in this document. This discussion contains, in addition to historical information, forward-looking statements that involve risks and uncertainties. The Company's actual results could differ materially from the results discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below, as well as those discussed below under Factors Affecting Future Operating Results. The Company disclaims any obligation to update information contained in any forward- looking statement.
Overview
Shearson Financial Network Inc. SFN was incorporated in Las Vegas, Nevada in July 2000, and is the parent to two primary operating divisions, Shearson Home Loans and Real Property Technologies (RPT). Shearson Home Loans (SHL) is a direct-to-consumer mortgage broker and banker with revenues derived primarily from origination commissions and resale of whole loans earned on the closing of first and second mortgages on single-family residences. SHL currently employs over 500 people which are residential mortgage and/or real estate brokerage professionals. The Company is a consolidator of mortgage brokerages and integrates the brokerage companies into the Shearson Home Loans network and then banks the mortgages through its mortgage banking unit. The Company plans to continue its growth strategy through the acquisition and affiliation of mortgage brokerage firms who do not currently bank their own production. By providing more efficient services to these smaller firms, SHL can accrete loan volume without having to "organically" grow the business. Banking of the accreted loan volume generates windfall revenue to the Company. Thus the rate of growth of SHL's revenue stream is dramatically accelerated. The Company has the infrastructure, systems, and operational management necessary to properly integrate these and many more acquisitions in order to establish a countywide network. The Company's business plan is focused on the integration of over 200 mortgage brokerage offices into the SHEARSON mortgage network.
RPT is a leading real estate information company with headquarters in New York. RPT reported revenues of approximately $24 million for fiscal year 2005 with pre tax profits of nearly four million dollars ($4,000,000) and has in excess of 200 employees. RPT operates within the Shearson Financial Network as a separate data network. RPT provides a steady revenue stream and profitability which the company looks to mitigate the effects of interest rate fluctuations in the mortgage lending market. The database has numerous marketing advantages for our mortgage operations.
Results of Operations
Three Months Ended September 30, 2006 Compared to Three Months Ended September 30, 2005
The acquisitions of Real Property Technologies Inc. and the asset purchase of certain assets of eHome Credit occurred in June of 2006 and therefore the company is reporting three months of financial activity for each of these companies for the three month reporting period. The acquisition of Allstate Funding Corp occurred on July 27, 2006 and the financials represents two months of operations.
Net revenues from origination and/or sale of loans increased 90.8% or $2.3 million, to $4.8 million for the quarter ended September 30, 2006 from $2.5 million for the quarter ended September 30, 2005. The increase in revenues is directly related to the Company's acquisitions of Real Properties Technologies, Inc., Allstate Funding Corp. and eHome Credit Corp., ("Acquired Companies") of which revenues totaled approximately $4.6 million. Data base revenue income from RPT was $5.4 million for the quarter ended September 30, 2006.
Gross profit increased $2.3 million or 296% to $3.1 million for the quarter ended June 30, 2006 from $793,785 for the quarter ended June 30, 2005. All of the increase is related to the Company's acquisitions of Real Properties Technologies, Inc., Continental Home Loans and eHome Credit Corp.
Posts: 157 | From: pa, usa | Registered: Oct 2006
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posted
Also,note that their revenues jumped to $14,003,738 for the 9 months ending Sep-30, 2006 (an increase of 123% over last year's figure of $6,266,648 for the 9 months ending Sep-30, 2005); and further note, that the revenues are based in part on only being able to materially include the contributions of Real Properties Technologies ($24 million per year in revenues) and Allstate Funding ($24 million per year in revenues) for 4 months and 2 months, respectively!!! All the key financial numbers are positive and advancing swiftly in the right direction. The next financial statement will be even better, as their revenue generating assets will be materially included for that much longer! Looking forward to a great press release this morning, or at some point today!
Posts: 74 | From: USA | Registered: Sep 2005
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posted
a good PR would send this flying! I have tried calling this morning but it goes right to voicemail. I hope they release something over the wire like they said they would...
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