LDI is a super high-risk stock with a tight balance sheet and negative earnings; the market prices it as if it is going bankrupt.

Uh LDI, Lone Depot, this is the 10K. The problem with a company like this is you have to ask like can they sustain these high balance sheets and long very long term the answer is no. But at some point they're going to end up getting whacked on their balance sheet if they're not already.

Okay. So here's the balance sheet the company has. You know what? Let's actually go to cash flow first. Let's see what we're doing over here. So, the company's losing money, which is not ideal.

You've got an origination of loans. Wow, they actually ended up doing more loans. How did they increase their loan originations? Wow. And then they actually generated good cash flow this year because they've been selling more loans than they've been creating, which they always have done, but they sold sold about 1.1 billion more than they had previously.

And then If we look at this purchase, net cash provided by operations, 350 payments to investors for loan repurposes. That's for repurchases. Okay. What do we have here? Plant property equipment's nominal here.

Oh, they actually repaid more than they borrowed by about 440 mil. Oh, that's really good. So, that's good. So, we're paying more than we're borrowing. We're not issuing stock. Well, they can't. Stock's too low.

They've got cash flow. How's their balance sheet look? I've got 229 million. I've got loans for sale. Yeah. So, we've been monetizing the balance sheet a little bit with uh a about a 520 mil decline in loans available for sale.

So, that's how they're surviving this, right? Is is they're reducing their balance sheet. That's what they're eating up to prevent having to go to markets. At least they have that.

Uh although a lot of that is warehouse funded and then repurchase obligations. Jeez, this is a lot of debt. Yeah, look at all these liabilities over here. So I got bills to pay of 346 mil.

So we need to sell more loans to pay and we don't have enough loans. I mean, you got servicing rights, but still loans eligible for repurchase. It's a tight balance sheet. Tight balance sheet.

Uh it's it's working now because they're doing more loans and they're selling some loans from portfolio to stay alive.

Really tough time for them. If you look at their margins, net revenues are up 337.3 divided by 282.5 19.3% up. And then if I look at expenses, 343.9 divided by 314.8 9.2% increase.

So we actually have positive margin here. positive margin, lower marketing expenses. Uh I've got but uh other costs are up. So they're marketing themselves a bit less. That also is a risk factor for longerterm growth.

Net their interest expense is a little bit lower but their interest income also fell. So their interest income has come down a little bit. Then we've got gain on origination of sales. that's roughly stable servicing fee income and then they took less of a hit uh less of a hit on change in servicing rights.

That's always the problem is how do you value mortgage servicing rights?

Huh. Yeah, this one's a little harder. This is going to take a little bit more time to go through because I don't think we can as easily compare as you can in this sort of company.

But that's what's happening with these is, you know, they are playing almost perfectly on the back of uh how would I put it? Um Apple, what am I on Apple? Um LDI. This is like a dollar, right?

78 cents now. This company is bleeding out. $263 million market cap. I mean, what's their what's their shareholder equity? Let's see. total equity. They're trading for less than equity right now.

Their total equity was 333 million over here. Now, you know, whatever.

But, uh, yeah, this this one's almost like, oh yeah, this one uh the market's like, "Sorry, dude. We think you're going bankrupt." But this is an interesting one. If if we think that, which it's so hard to call, but like if you were to think that Trump's going to come out with a taco and mark the bottom in uh in in the pain for the bond market, you know, this is a this is a little firecracker.

Small little stuck. Obviously, a lot of risk that you know, how how do you time the bottom of that?

So, let me go see what is forecast for them. still expected to grow revenue even in this high interest rate time of 6 to 7%. Shows some uh income growth and cash flow to some extent monetizing the balance sheet but I think they're strategically selling just to stay up.

All right, interesting. Let's see what news there is on these guys. Uh, let's see. Volumes Q2 there came in with a Q2 adjusted loss when there was an estimate of profit coming.

Oh, Q3 originations. Oh, wow. Oh, there just aren't that many estimates. There only two people actually pay focusing on this. Oh, and in May they actually issued up to a 100 million of shares.

That's interesting. So, at the market sales agreement, the company may from time to time issue shares of up to hund00 million. Interesting. So, I wonder if we've seen because I don't think that's actually come in yet on the financials.

So, if I look here, cash flow and we go to proceeds. I don't see that. Let me see here. Financing though. There we go. Financing, stock options, debt, borrowings. I don't think they've actually issued the shares yet six unless it's not in the sixmonth.

It's possible it's in the annual six months ending June 30th. Yeah, if they just haven't sold the shares until now, they could have carried that over from May. Oh, that would be interesting.

That could explain why the stock is falling so much.

Financials, annual. Come on. These annual reports are so freaking long. Okay, here we go. Here it is. Net cache. Whoops. That's a messy desktop. Clean that up. Uh, okay. So, this is where is it?

Stock debt borrowings. I don't see it. Treasury stock purchased. That's a negative. I don't actually think they've issued their shares yet. That is fascinating.

Let me see what I can look up on that. So, if I go there's another place we can go for this. Let's go over here too in the meantime. Uh Q's that stock's actually down 5% today.

Uh if we go here, this is Let me see if I can look up the share sales. Okay, we're gonna find out. So, this is a risky risky bisit. They need the money and they can't sell the shares because, you know, they're trading.

How are their volume how are their volumes been? Let me hide all this for a moment. There we go. That's Oh, sorry. Those are the cues. There we go. So, massive volume over here when it ran up in 2025.

Definitely higher volume here, but it's probably because the share price is so much lower. So, they issued their S3 to issue stock May 15th. That's what we saw. No confirmed sales yet.

That's a speculative one, huh? That's very interesting. I mean, look at its RSI. It's relative strength on the weekly basis is now at 31. You are kissing oversold probably.

LDI is is, you know, super high risk. what they need. And and the problem is if the stock goes up a bunch, they might end up issuing shares. They're like, "Ah, thanks for helping us pump a bit.

Now we're going to have to issue shares." How fun.