| Each month The Savvy Investor analysts study, research, and examine hundreds of stocks, in an effort to pinpoint the one with the most promise. This month's pick:
First Chesapeake Financial Corp Symbol:
FCFK Recent
Trading Range: $.33
- $.40
Near Term
Rating:
Market Outperform |
| In Related News: |
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 The great American rate chase has heated up again. Average 30-year
rates have hit seven-month lows of 5.58 percent.
More..
 Americans
filed applications to refinance their mortgages at their highest levels in
seven months, and sent overall weekly mortgage activity higher for a third
straight week.
More..
Short-term yields plunged 15 basis points on job news, a move more normally
associated with a cut in official interest rates, while a dive in longer-dated
yields looked certain to drag mortgage rates sharply lower.
More.. |
Financial Analysis |
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Closed $1,000,000.00 in new
round of financing. Total assets increased +118% last year
from $5,527,931 at December 31, 2002 to $12,090,479 at September 30,
2003. 13
regional offices active in seven states
with applications pending in additional states. |
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Corporate Profile |
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First Chesapeake
Financial Corp., incorporated in 1992, is a financial services company
providing residential mortgage products and related services to its
customers through its wholly owned mortgage banking subsidiaries.
The Company's
strategy is to offer a full range of mortgage products to borrowers of
various credit levels and distribute these loans in a risk averse manner
through either bulk secondary market sales, loan sales to specific
institutional investors, or brokering of individual loans to niche
investors. Through this strategy, the Company anticipates profitability
and continued expansion with reduced exposure to interest rate and
credit risks. Retail operations originate
loans directly from the consumer, while wholesale operations provide an
efficient market for retail mortgage loans originated by its retail
operations, as well as through purchase of loans from third party loan
originators. |
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Analyst Conclusion
It is widely known that lower rates are inexorably linked to high refinancing activity, a
boon for lenders. Furthermore, the official consensus indicates stable
rates persisting throughout 2004. This looks like an explosive company with great potential based on
historically low mortgage rates, tiny float, and the fact that insiders
hold most of the O/S. ...seems they know something is about to
unfold...the Technical
Analysis
speaks for itself --BULLISH
 Editing Chairman |
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