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Strategies & Market Trends : Value Investing
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To: E_K_S who wrote (36954)3/12/2010 1:09:49 PM
From: Area51  Read Replies (1) of 78750
 
EKS,

Thanks for the reply. I agree the stock and the preferred have had a good run of late (both up roughly 50% in 3 months)off the relatively good earnings report. Buying before earnings when it the common was around $1 would have been better. If you look at a 1 or 3 month chart it looks expensive, but on a longer term chart or relative to book value it still looks fairly cheap to me.

RAS-A sells for around 15 and yields about 13%. I have gone from 90% preferred\common split down to about 75%\25%. Which is the better purchase (common\preferred) depends on investor objectives (certainly the common has a better capital appreciation potential) and one's outlook for the company (preferred is better if they just survive, common is better if they thrive).

My gut is that everyone is just disinterested in the company (perhaps for many good reasons including the low stock price) which is why it still trades so cheaply. Of course I could be very wrong, and the market sees future trouble down the road that I haven't fully comprehended.

Not really one I wanted to recommend (although I added a little today), I just one I wanted to get some independent opinions on it's outlook especially if anyone still followed it closely.

Thanks, A51
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