Bullpen.News From Edwin Dorsey
Get Daily Recap Feedback

Saturday, October 31, 2026

Back to today

When the liquidity does not add up

Arbor Realty Trust’s dividend suspension is presented as creating $60 million of liquidity, raising questions about its ability to meet 2027 debt maturities.

ABR $2.2B
John Hempton's Newsletter 3 clicks

From X

@calvinblissett

Calvin Blissett on X

$TZOO. Something happened after I posted this. For the second time someone intelligent reached out sharing their thoughts and insists. They were one of the only people to speak to the CEO in the past year. I’d never looked too deeply but it’s been on Joel Greenblatt magic formula for years now. They underwent a significant business model change. I can attest to the value proposition personally because recently I traveled somewhere where they posted a very popular (very good value) deal. AI is not as much of a threat as it may seem and actually is more likely to be a tailwind which I explain. The business model grew through 2008 so I’m not overly concerned about recession risk, and their reports show that 74% of their affluent travel loving customer base would cut travel last. I think the stock can 4x. It reminds me of $BMBL sentiment and accounting wise. Writeup tommrow
@calvinblissett 1 click

Calvin Blissett on X

$TBBK: $46.75, $1.91B mkt cap, 8.2x trailing earnings and ~6.6x the new 2027 guide ($7.00-7.20), a 36% ROE, and 11% fewer shares than a year ago. $200M of buybacks this year, about 10% of the market cap. The Bancorp is the bank behind a lot of the fintech cards in your wallet. Fintechs bring the customers and Bancorp holds the deposits, which cost it almost nothing. Q3 EPS was $1.53, up 30%, fintech fees grew 19%, and payment volume grew 23% to $54B. The stock still fell 7.5% Friday because they cut the 2027 target from $8.10-8.30 to $7.00-7.20. In September Chime agreed to buy Stride Bank, its other partner bank, and the market read that as Chime eventually leaving. The bears have been loud and sometimes right. A VIC short in Dec 2023 at $38.93 called the earnings unsustainable and the accounting aggressive. On X, one guy called the guide-down "easy to call" before it happened, and others flagged the small business lending exit, layoffs, and a lending head leaving with a $2.5M package. But since that short the share count has gone from 54M to 41M, and the stock is higher. Even on the reset numbers you're paying ~6.6x 2027 and ~5.8x their preliminary 2028, and they plan to buy back ~100% of net income from 2027 on. Value Line cut it to Technical 5 on Friday, so nobody wants it. The whole question is how much Chime volume leaves. Management calls the new 2027 number a baseline, so watch whether it holds.
@calvinblissett 1 click

Calvin Blissett on X

$NTB: $56.15, $2.22B mkt cap, 9.8x trailing and 8.1x forward earnings, a 21% ROE, a 3.6% dividend, and 5.4% of the shares bought back in the last year. ~2.2x tangible book of $25.32. Butterfield has been banking in Bermuda since 1858 and also runs trust and wealth businesses in Cayman and the Channel Islands. Offshore deposits are sticky and cheap, and the trust business is a fee stream that doesn't care about rate cuts. Q3 core EPS was $1.58, flat with Q2, revenue beat at $161.9M, and tangible book dipped 3.3% on bond marks. gary9 wrote it up on VIC in 2017 at $33.94 and nailed why it stays cheap: "NTB screens as expensive on a P/B multiple, while the higher ROEs are dismissed due to a 0% tax rate." Nine years later the same thing is true. 2.2x tangible book looks expensive for a bank, until you see it earns 21% on equity and sends ~9% of its market cap back every year in dividends and buybacks. Value Line rates it Safety 2 with a Price Stability of 75, the steadiest name in the issue. The thing to watch is taxes. If Bermuda's global minimum tax ever reaches a bank this size, the 0% rate goes away, and so does part of the ROE.

Investor Letters

All letters
SHLS · long

Shoals Technologies Group Inc

Shoals Technologies’ utility-scale solar cabling business is reaccelerating as gross margins bottom.

SHLS $1.2B
Value Investors Club 3 clicks

ContextLogic

ContextLogic’s US Salt holds about 23% of the US and Canadian pharmaceutical-grade salt market, one of only two suppliers, supporting…

LOGC $701M
Kairos Research

Jumia

Jumia’s January 2028 $7/$15 call spread risks $1.15 for up to $6.85 if cost cuts and marketplace growth deliver adjusted EBITDA and…

JMIA $690M
Triple S Special Situations Investing 13 clicks

Performance Review: H1 2026

REIT holdings outperformed in H1 2026, with Veris Residential sold in a $19-per-share take-private and FrontView REIT trimmed after a 78%…

FVR $446M
Real Assets, Real Value 1 click

Stock Trade Compilation Diez

E.W. Scripps, Team Internet, Monro, doValue and Inter & Co feature as special-situation trades involving mergers, asset sales, leverage and…

MNRO $380M
Triple S Special Situations Investing 9 clicks

Publications we follow

Every publication on this site, hand-picked.

129 publications

Newsletters 109

YouTube 4

Blogs 15

Seeking Alpha 67 of 269

Nominate a publication

X accounts we follow

Every account on this site, hand-picked.

91 accounts
Nominate an account

Investor letters we follow

190 firms

Sectors

Ordered by how often our editor reaches for them.