NYSE Stops All Trading of American Home Mortgage Stock
Filed under: Business, News | By: Roy
Posted on: July 31, 2007 | 1 Comment
Shares in American Home Mortgage Investment Corporation have been ordered to stop trading on the New York Stock Exchange.
This is waiting on significant news of American Home Mortgage that has yet to be released.
American Home Mortgage is not be going through a good time recently, with its stock price down over 70% in the last year.
The reason for the most recent plunge and the halting of trading is due to American Home Mortgage delaying a dividend payment.
Longer term the poor performance of American Home Mortgage is due to concerns about the real estate market in the USA.
What do you think of American Home Mortgage halting trading?
CLICK HERE to keep updated with the latest news, share a comment or problems with products and services. Follow us on twitter or read more news.
AHM is today’s scapegoat for what Wall Street and the public does not want to hear - Mortgage defaults are up and still rising. AHM’s same management was in place just two years ago when every article praised AHM’s rise in production and profits. AHM originated $16 billion in loans the 1st quarter of this year, likely none of which were risky loans. AHM rise over the past several years was due to the company’s quickness in offering loan products to meet the market needs, and changing its loan underwriting guidelines accordingly. It has been doing the same - adapting to the market, tightening its guidelines and dropping risky loan products since the negative impact by the New Century collapse, which changed the entire industry. If you pull the plug on AHM, a profitable, well run company that has changed to meet the market changes, then who next?