Business Services Industry
MortgageBrokers.com Holdings, Inc. Receives "Speculative Buy" Rating from Analyst Howard N. Stillman
Business Wire, May 3, 2007
DALLAS --
SPECULATIVE BUY MORTGAGE BROKERS.COM OTCBB SYMBOL: MBKR PRICE: $1.20 RANGE: $2.35 HIGH $0.175 LOW CAPITALIZATION COMMON STOCK 36,088,000 SHARES OUTSTANDING FLOAT: 6,000,000 APROXIMATE
SUMMARY & CONCLUSION
MortgageBrokers.com (OTCBB: MBKR) has successfully launched its mortgage brokerage services operation getting excellent early results from its innovative business model. Initially conducting business in Canada, it attained annual revenues of $4 million for 2006. This was accomplished while management was just implementing strong broker affiliations with RE/MAX Ontario-Atlantic Canada Inc. and Maxwell Realty. Furthermore, it has set the stage to participate in all North American regions and the European Union. The Canadian real estate market has experienced record home sale activities in recent years and expected to maintain an annual pace moderately below the new sales peaks achieved of over 200,000 new housing starts and in excess of 460,000 residential re-sales. Moreover, company plans to carve out a larger share of the mortgage origination market are underway. This factor, along with unique marketing programs, high technology internal support efforts and strong mortgage connections with financial institutions bodes well for rapid future growth.
Sparked by a crucial 10-year license agreement with RE/MAX O-A in Canada to provide mortgage solutions for the latter's franchisees and sales persons represents a business affiliation with the No.1 residential real estate network in Canada for the past twenty years. RE/MAX O-A has licensed over 7,000 sales associates and placed $32 billion in real estate transactions last year. RE/MAX O-A has also invested over $2.1 million in MBKR owning a 6% interest in the common stock.
Maxwell Realty brings 703 representatives and 24 offices in the fold under their agreement serving the rapidly growing western Canadian market. This has enabled the company to benefit from the fragmented real estate industry it serves by providing a unique incentive program of adding real estate brokers to its roster. This incentive plan is further designed to address the need of the small and medium sized mortgage brokerages as to agent retention, equity ownership and exit strategy. New brokers are offered a stock-ownership plan; back office and compliance support; a high technology infrastructure using the Internet to facilitate and expedite business performance; and an alliance with major recognizable brands like RE/MAX O-A and Maxwell Realty. Moreover, the CEO of the company will fund the stock ownership plan with up to 4,000,000 shares of his holdings to avoid dilution to the common stock.
Management is comprised of seasoned industry professionals while continuing to add experienced staff, including mortgage originators. Additional funding for future capital needs will probably be through sale of stock until internal cash flows meet requirements. Management has forecast over $40 million in revenues and profitability for 2007. Reflecting strong growth potential in coming years for its innovative operating programs, the shares appear speculative attractive for risk-oriented investors seeking material capital gains.
-- Howard N. Stillman, Security Analyst
This report is read at your own risk. It was prepared for a fee of $3,000. It is based upon information believed to be reliable, but cannot be guaranteed for its accuracy or completeness.
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