There is no disputing the fact that Thornburg mortgage is in a slump. The 52 week high for Thornburg was $28.40, while the 52 week low was 69 cents. No, not a typo – 69 cents. So when Thornburg said it needs to raise $1 million (USD) or perhaps they will go broke, who is going to listen? Obviously there must be a handsome return on the risky investment. In exchange for consideration Thornburg will seriously dilute their stock. The capital, to be raised via a convertible bond issue, would lead to investors in those securities owning 27% of the company.
Busines majors, both graduate school students and undergrads, might study Thornburg and others to see exactly how they form a business plan – or survival plan – and how it works in the long run. Time will tell.
Thornburg’s profile says “The Company is a single-family residential mortgage lender that originates, acquires and retains investments in ARM Assets, thereby providing capital to the single-family residential housing market.”
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This article, 69 cent Thornburg needs one million dollars, is just one of our articles from our Mortgage Crisis Daily
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