Ocwen Asset Inv. Co (OAC) Message Board

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Strategies & Market Trends : Ocwen Asset Inv. Co (OAC)

OAC 15.43

-5.8%

Jan 21 4:00 PM EST

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To: Toby Zidle who wrote (54)	3/23/1999 8:49:00 AM
From: Labrador	Read Replies (1) of 64

I think that they are being conservative in their disclosure relating to the dividend. If they do not pay it, the company loses its REIT classification for 1998. It will owe a lot of tax in 1998. The company would be open to many lawsuits, as well as substantial tax, interest and penalties. I feel confident the dividend will be paid. I think that now since the company is merely going to manage its portfolio, and not purchase new investments, it is a good buy up to about 75% of book value. I can see the stock increasing substantially in price once the first quarter's results are released. Just an opinion, but interest rates have ticked upwards which should be good for the I/Os and variable rate certificates. You can also feel comfortable that the company was conservative in their valuation, and PriceWaterhouse probably kicked the tires quite hard. No guarantees, but I think that we can see a double by year-end here. I haven't looked at this REIT in some time, but under $5 in my view is a steal.

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