Mr. Pink's Picks: selected event-driven value investments Message Board

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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments

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To: Mr. Pink who wrote (1484)	5/3/1998 4:45:00 PM
From: maurice18	Read Replies (1) of 18998

Mr. Pink-Is it possible SIR is traging high because of 1. growth in earnings due to increased loans and the leverage it has (spread between borrowing cost and lending cost), and 2. the unrecorded value of the warrants it receives as equity kickers on its loans to growing companies. When these companies go public, the value of the warrants goes up. I understand SIR has an enviable record of low defaults and of high appreciation from these warrants which it conservatively does not record as appreciating until there is a clear valuation event that proves the value went up. Unrelated-what do you think of another home builder AMREP (AXR) that is sitting on cheap land in New mExico and other SW states and also "magazine fulfillment " house to boot. Not sure what one has to do with the other. Probably some deal that put them together a while ago. COuld increase value substantially if businessess seperated and one spun off. P/E is about 4! No hidden litigation or other skeletons. Believe chairman has substantial ownership and keeps it locked up. Recently, DImensional funds began accumulating and pushed price up above 10. They stopped buying and price has slid to 8. Comments? Thanks. Respectfully,

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