Certified Public Accountant

David Sims is a Certified Public Accountant residing in Richmond, Virginia.

ALL CONTRIBUTIONS

Fannie And Freddie: The Next Crisis Is Coming
Reduction of the companies' Deferred Tax Assets could increase their net losses, requiring capital infusions from Treasury.
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Hidden Value In These Stocks When Rates Move Up
While it may be difficult to calculate the full value of Fannie Mae and Freddie Mac's guarantee fees, a quick comparison to mortgage servicing rights gets us a lot closer to an accurate accounting.
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Repeal Of Dodd-Frank Could Have Big Consequences
The recent controversial election results have created a lot of optimism in the financial sector, but also concern from citizens about the repeal of Dodd-Frank. New research supports the repeal of burdensome financial regulations.
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Comments

Latest Comments
Will Netflix Ever Disappoint Investors?
10 months ago

I watched most of the Game of Thrones series on Netflix, but then got HBO for free when I tried to cut cable. Now, I will probably just cancel my cable for 24 hours and get it again for free.

In this article: NFLX
The Market Is Setting Up For A Massive Sell-Off
10 months ago

Great minds think alike!

Broader Markets Headed for Blow-off Top? $DIA $SPY https://goo.gl/1lq2BO

Will Netflix Ever Disappoint Investors?
10 months ago

My kids sit around watching YouTube videos for hours that people created in their living room. The people create this content for free. Quality is in the eye of the beholder.

In this article: NFLX
Fannie And Freddie: The Next Crisis Is Coming
10 months ago

Agree. The government has been paid back. The warrants provide dilution but no additional value. It would make more sense to issue a portion of them with a strike price. If capital is successfully raised, then another round could be issued to the market.

Also, update to the disclosure, I do not hold any GSE equity and have no financial interest in the stock. This issue is important to me. We need an equity backstop in the housing finance market.

In this article: FMCC, FNMA
5 Stocks To Buy As Unemployment Hits 9-Year Low
10 months ago

Will Netflix Ever Disappoint Investors? $NFLX https://goo.gl/bpGR9Z

In this article: CLGX, NCI, CRAI, ACN, HCKT
5 Stocks To Buy As Unemployment Hits 9-Year Low
10 months ago

If going long, I am a small cap value guy. I think the larger markets are overvalued and due for a 35% correction. Timing.... Who knows?!

I've had people ask me about #Netflix recently. I don't like the valuation at all. PE of 322. What?! Forward PE of 125. What?!

I don't care if $NFLX is creating wonderful new programming. At some point the growth model stalls. There's not enough demand for that. My kids spend all day watching YouTube. People make content for free every day.

In this article: CLGX, NCI, CRAI, ACN, HCKT
5 Stocks To Buy As Unemployment Hits 9-Year Low
10 months ago

If we are nearing the top of the economic cycle, shouldn't we be talking about which stocks to sell?

In this article: CLGX, NCI, CRAI, ACN, HCKT
Repeal Of Dodd-Frank Could Have Big Consequences
10 months ago

I've been following the mortgage market for many years. I think I may have felt similarly in 2009 to 2011, but I also follow a lot of the data. For instance, while the homeownership rate is at a 20 year low, the cost of renting has been higher than the cost of owning a home for several years. As a public policy goal, it is important to push policies that are good for the middle class. Homeownership is one of these things.

The Federal Reserve guides interest rate decisions based upon things like the Philips Curve. When unemployment goes up, they tend to lower interest rates, but only if inflation is also subdued.

What this country lacks is a economic housing policy based on data. Right now, we have housing policies based on public opinion and politics. People tend to think about things that happened eight years ago, as if they are true today. In 2005, people without jobs or assets were getting loans for homes that had $300,000 mortgages. No doc loans are a far swing away from the current mess.

Fannie's minimum credit score is a 620, but most banks won't talk to you without a score over 680 and strong W-2 documented income. This is also true for self-employed people that might have high credit scores and lots of assets. I know from experience. When I started my own RIA firm, I could not refinance my rental property or my home residence through HARP or the FHA streamline program. The risk of default remained the same for my banks in these cases, but they didn't want to do anything to draw the attention of regulators. (I have good credit and assets).

Trump Should Absolutely Issue 100-Year Bonds
10 months ago

I'd say we should probably issue a few trillion dollars in 100 year bonds and spend that money on infrastructure, asap.

Here's an interesting and related story on CNBC. Apparently #Trump is a Keynesian.

www.cnbc.com/.../...ho-supported-clinton-says.html

Trump Should Absolutely Issue 100-Year Bonds
10 months ago

Interesting idea. I wonder what these bonds might yield.

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STOCKS I FOLLOW

FMCC Freddie Mac
FNMA Fannie Mae
IMH Impac Mortgage Holdings, Inc.
NSM Nationstar Mortgage Holdings Inc.
OCN Ocwen Financial Corporation
TLT iShares Lehman 20+ Year Treasury Bond Fund
WAC Walter Investment Management Corp

TWEETS

PERSONAL BLOG

Latest Posts
Exxon Shareholders Beware The Same Fate As Yukos
Tillerson helped Rosneft acquire Yukos assets.
President Elect Troll Continues To Deflect Attention From The Russian Hack Scandal
Russian oil reserves may be at the center of the brewing election scandal.
Christmas Feast May End In Spectacle
Cheers to 2017 and the impending market correction.
Broader Markets Headed For Blow-Off Top?
Extreme greed is sending markets into overbought territory.
Open Letter To Impac Mortgage Board Of Directors
This is an open letter to the Board of Impac Mortgage holdings. No comments will be made on this.
Extreme Greed Gripping The Markets
Markets continue to defy expectations.
Will Netflix Ever Disappoint Investors?
Valuations are insane on this stock.
Unsustainable Equity Yields Persist
We need some earnings growth to justify market valuations.

Work Experience

Founder
RidgeHaven Capital LLC
2015 - Present (2 years 10 months)

RidgeHaven Capital LLC is a Registered Investment Advisor in the Commonwealth of Virginia.
www.ridgehavencapital.com

Manager - Financial Reporting & Analysis
Berkshire Hathaway
November 2013 - April 2014 (6 months)

BHMedia is a division of Berkshire Hathaway, and owner of multiple media properties in the United States.

Senior Accountant, Financial Reporting
McKesson
July 2012 - November 2013 (1 year 5 months)

General Accounting and Financial Reporting Duties.

Education

James Madison University
MSA
2003 / 2005
Accounting
William & Mary
BBA
1992 / 2002
Finance. Activities and Societies: Kappa Alpha Order

Publications