I'll keep it short. HRB owns Option One, a huge subprime lender almost identical to New Century in lending protocols and origination volume. HRB has been trying to sell Option One for several months now , but as the housing market has become worse, all negotiations have collapsed. Eventually HRB will need to reveal their true losses from Option One and as the housing market continues to correct over the summer, the situation for HRB will get worse. Target is $15 but, of course it is impossible to predict how the market will eventually react to HRB given a continued housing correction. Range is from $20-$10 by October.
$20.9 (04/13/07)
