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Press Releases

Contact:
Assaf Ran, CEO
Inbar Evron-Yogev, CFO
(212) 489-6800
SOURCE: Manhattan Bridge Capital, Inc.

 

BarelKarsan.com Releases a Report on Manhattan Bridge Capital

NEW YORK, N.Y. February 5, 2010 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN), today announced that on January 15, 2010, it was featured on BarelKarsan.com. The article headlined “Bridging The Value Gap” by Saj Karsan. The article identifies Manhattan Bridge Capital as a potentially undervalued company.

The article stated:
“Manhattan Bridge Capital (LOAN) provides bridge loans to small businesses needing short-term financing. This is a risky sounding business, particularly in a recessionary period. However, many elements of this situation make for an intriguing potential value investment.
First of all, the company's loans are secured and short-term in nature. Usually, real-estate is used as security against the loans, and all payments are due within a year. Throughout every quarter of this downturn, business has (somewhat surprisingly) appeared to run smoothly, with full and timely collections resulting in a growing loan asset pool.

Manhattan Bridge's capital structure is very safe as well, as the company carries minimal debt relative to its loan portfolio. Furthermore, the stock trades for half of its net current assets (with the loan portfolio classified as current due to the short-term nature of the loans).

There are some other interesting items with respect to this stock as well. It is a ridiculously small company, even by the standards of this site! The company's market cap is just over $3 million, and the company had but 3 employees as of its last annual report. Also, as the company's share price has hovered below $1 for extended periods, it has received warnings from the Nasdaq, but so far it has remained compliant with the exchange's requirements.

Whether the company's bridge loans will continue to perform is an open question. However, the market appears to be counting on the fact that half of these loans will fail, offering value investors a margin of safety with potential for price appreciation. In many ways, this company's price/value situation is very similar to that of Quest Capital, another potential value investment previously discussed on this site.”

To see the full article, visit: http://www.barelkarsan.com/2010/01/bridging-value-gap.html

Disclosure: Author has a long position in shares of LOAN

Disclaimer: The author is not a registered financial advisor. Investors should consult with their financial advisors before making portfolio decisions to ensure suitability.

 

Manhattan Bridge Capital, Inc., provides short term, secured, non-banking, commercial loans to small businesses. We operate the web site: http://www.manhattanbridgecapital.com

 

Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, the risks with marketing of its new on-line software solution, the continued acceptance of the Company's new and existing products, increased levels of competition, new products introduced by competitors, changes in the rates of subscriber acquisition and retention, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.

 

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