Just days after many wrote the company off as just another casualty of the mortgage bust, Thornburg Mortgage bounced back in style, clawing its way back from the dead.
The jumbo adjustable-rate mortgage lender, who had been faced with a slew of margin calls it couldn’t meet, can attribute part of its recovery to the recent Fed action that seemed to stabilize the price of mortgage securities.
The Santa Fe, New Mexico-based lender also noted yesterday that it was in discussions with all of its lenders to meet all outstanding margin calls in a timely manner, boosting hopes for a turnaround.
That led Bear Stearns analyst David Hochstim to upgrade the stock to “peer perform” from “underperform,” sending shares more than 100 percent higher in trading Wednesday.
And that’s a day after shares surged more than 100 percent from a low of just 69 cents when the company looked as if it couldn’t be revived.
Thornburg is currently up $1.56, or 100.18%, to $3.12 in afternoon trading, but it still has an uphill battle to fight with more than $600 million in margin calls outstanding as of last week.
(photo: mikebaird)
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