• 10baggerbamm : if you have a position in fathom you should read Marcus's vision for the company.
  Marcus Lemonis (@marcuslemonis) on X" nonce="T0cIrQNANduLE1hZ9fow+A==
  

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• FACE1753 10baggerbamm : Hi Baggs, I don't have a position in Fathom right now, but do you think it's a good time to start a position in light of this merger? Rates still aren't good so I'm a little reticent but curious about your thoughts.

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• 10baggerbamm FACE1753 : NO.... YOU DON'T WANT TO BUY A COMPANY THAT'S ALREADY PART OF A MERGER DEAL STAY AWAY THIS IS A VERY LONG-TERM TURNAROUND AND NOW IT'S PERFORMANCE IS ALSO GOING TO BE PREDICATED ON BED BATH & BEYOND PERFORMANCE SO DON'T BUY IT I CAN'T BE ANY MORE CLEAR

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• FACE1753 10baggerbamm : Appreciate your response. Thank you!

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• 10baggerbamm FACE1753 : it's important to understand while some of these stocks in The lending industry may rise like rocket mortgage is going up now and had a $24 price Target put on it I thought either this morning or yesterday rocket makes its money by refinancing that's where your money is made your real money is made by doing what's called Cash out refinances number one number two rate and turn refinances.
  Cash out is when somebody has accumulated other debt they have personal loans which will be in a much higher interest rates credit cards much higher interest rates car loans much higher interest rates student loans.. maybe they got to get money for a divorce for paying their their EX maybe you've got a parent that left the house to several kids one of the kids wants to live in the house he needs to get cash to buy out or pay off their brother or their sisters.
  so these are your cash out refinances that's where your real money is made
  when you refinance with what is called a rate and term they're a lot more frugal because they're looking at what's called the APR which is the cost of the loan the annual percentage rate factoring in all the fees it's just not the rate that you're quoted it's when you factor in the full cost of doing the loan what is my actual rate that I'm making the payment on so everybody knows where their current mortgage rate is you're only going to do a rate and turn refinance if the rate is lower well this industry this segment of the market is fucked it's dead and that's because during covid you had 3% 3 1/2% 4% 4 1/2% interest rates nobody is going to go to a six and a half percent mortgage so they stay where they are you just lost a huge percentage of business
  the least amount of business that's done is on existing home sales number one followed by new home construction number 2 in that order there's more existing homes than new construction and people are buying but the rate is not at any record level and what's happening is the owners of the properties that are trying to sell they have to reduce their asking price because it cost to borrowing is high and people can only afford so much so they're either are reducing their asking prices or they take their house off the market if they take their house off the market they reduce the supply which keeps the other houses at a higher elevation in price because you have less supply available that potential buyers will put offers in on.
  so until interest rates get down into the solid 5% 30-year fixed rate loan you're not getting a real estate cycle it's not happening you're not having a refinance cycle you're not having a rate and term refinance boom you are going to have people that will buy houses but not at a record rate and new home construction until it gets into the low fives isn't going to be anything to write home about so the industry is dead that's the only way to say it Marcus has the rest of his life to turn this company around he's Rich he's fucking loaded I mean he's worth hundreds of millions of dollars so he's got a long-term horizon.
  it's already been 4 years right now and a bear Market for the real estate market. there's no turnaround in sight so even though the stocks may go up the earnings are going to suck their guidance is going to suck because even if the interest rates get back down to where it was before the war started it was a bear Market there was no refinance cycle there was no real estate new home construction cycle it sucked so money can go into the stock short-term and bid them up but the earnings in the guidance are going to be terrible and then they're going to come right back down again

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• HashanBoy : maybe cause they with bed bath an beyond or some like that.

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