SACH - Sachem Capital Corporation

[ragnarisapirate]

Hey all:

 

Anybody else see that SACH's earnings came out this AM?

 

Earnings of about $.10/share vs. $.13/share in the year ago period.  Lower earnings this quarter was due in part to a larger number of shares outstanding.

 

Revenue was up about 29% YOY.

 

Stock is up $.25/share, to about $2.54/share.

 

Maybe people are reacting negatively as EPS are down?  I am surprised that the bonds aren't trading near par.

 

Going to be interesting to see what the dividend is for the year.  Might be $.35 to $.40?

 

I believe the bonds aren't moving because they blew their entire cash balance on new loans in Q1. You don't think that's a major issue?

 

No, I don't think they have substantially burned off cash & short term since the last conference call.  It is down, but only about $3mm?

 

That might be due to commitments that they had, but had not yet funded/paid for?

 

So I don't think your assertion is correct.  Will find out in the Tuesday conference call.

 

Yeah, on the last conference call, they said they had $21mm in cash. This Q, their cash went down, but was largely offset by short term investments. Read, treasuries and such.

 

I see this as a non issue, and actually, a pretty good development.

 

Also note that the property owned is going down, which a lot of people were freaking out about. Furthermore, they sold some of their investments for a GAIN of $544K.

 

I don’t see how this could have been much of a better Q, unless they had bought back debt. But, they want that cash to provide safety to the company, so, I can’t blame them. This should be trading for no less than book.

[matts]

Hey all:

 

Anybody else see that SACH's earnings came out this AM?

 

Earnings of about $.10/share vs. $.13/share in the year ago period.  Lower earnings this quarter was due in part to a larger number of shares outstanding.

 

Revenue was up about 29% YOY.

 

Stock is up $.25/share, to about $2.54/share.

 

Maybe people are reacting negatively as EPS are down?  I am surprised that the bonds aren't trading near par.

 

Going to be interesting to see what the dividend is for the year.  Might be $.35 to $.40?

 

I believe the bonds aren't moving because they blew their entire cash balance on new loans in Q1. You don't think that's a major issue?

 

No, I don't think they have substantially burned off cash & short term since the last conference call.  It is down, but only about $3mm?

 

That might be due to commitments that they had, but had not yet funded/paid for?

 

So I don't think your assertion is correct.  Will find out in the Tuesday conference call.

 

Am i reading the release wrong? Dec 31, cash plus "investments" were 35MM, March it's 18MM. They bought some investments but they also sold an equal amount according to the CF statement:

 

Purchase of investments and marketable securities (17,417,059 )

Proceeds from the sale of investments and marketable securities 17,428,603

 

so looks to me the decrease in cash equivalents is due to originating new loans. I might be wrong so please correct me.

[ragnarisapirate]

Hey all:

 

Anybody else see that SACH's earnings came out this AM?

 

Earnings of about $.10/share vs. $.13/share in the year ago period.  Lower earnings this quarter was due in part to a larger number of shares outstanding.

 

Revenue was up about 29% YOY.

 

Stock is up $.25/share, to about $2.54/share.

 

Maybe people are reacting negatively as EPS are down?  I am surprised that the bonds aren't trading near par.

 

Going to be interesting to see what the dividend is for the year.  Might be $.35 to $.40?

 

I believe the bonds aren't moving because they blew their entire cash balance on new loans in Q1. You don't think that's a major issue?

 

No, I don't think they have substantially burned off cash & short term since the last conference call.  It is down, but only about $3mm?

 

That might be due to commitments that they had, but had not yet funded/paid for?

 

So I don't think your assertion is correct.  Will find out in the Tuesday conference call.

 

Am i reading the release wrong? Dec 31, cash plus "investments" were 35MM, March it's 18MM. They bought some investments but they also sold an equal amount according to the CF statement:

 

Purchase of investments and marketable securities (17,417,059 )

Proceeds from the sale of investments and marketable securities 17,428,603

 

so looks to me the decrease in cash equivalents is due to originating new loans. I might be wrong so please correct me.

 

Yes, the decrease in cash is from new originations. However, when you are working off the dec31 Q, you are working with old info. Prior to today, the  newest info that was out was on the conference call that they had for that 10Q. On that call, they said that they had $21mm in cash, on the date of the call. So yes, quarter over quarter, they lent out a nice bit of money- but, base on the last info we had, not nearly as much.

[matts]

Thanks for setting me straight. I still don't like how much cash they pushed out the door recently, even if it was jan/feb/and early march. wonder how many of these entrepreneurs and still doing renos quietly even with the stay in place orders. I imagine quite a few.

 

How about almost 10% of their loans asking for forbearance? we'll get more color on the call about how many were granted but that does seem like a pretty high number. Problem is Sachem has very little leverage against these guys until the courts open up.

[ragnarisapirate]

Thanks for setting me straight. I still don't like how much cash they pushed out the door recently, even if it was jan/feb/and early march. wonder how many of these entrepreneurs and still doing renos quietly even with the stay in place orders. I imagine quite a few.

 

How about almost 10% of their loans asking for forbearance? we'll get more color on the call about how many were granted but that does seem like a pretty high number. Problem is Sachem has very little leverage against these guys until the courts open up.

 

Forebearance is just kinda the name of the game with these businesses. I don’t think it’s an issue. Pretty common in these types of lending situations.

 

I hope that you are on the call so you can ask about it! :)