REXI is jumping up! Message Board

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Strategies & Market Trends : REXI is jumping up!

REXI 9.780

0.0%

Sep 9 5:00 PM EST

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To: Tradegod who wrote (26)	8/25/1998 2:44:00 AM
From: Tom Murphy	Read Replies (1) of 83

I caught REXI on CNBC today and decided to check it out. I scanned the last earnings report and something jumped out at me: "An increase of $15.1 million (393%) in gains from sales of senior lien interests and sales of loans. This increase was primarily the result of an increase in the number of loans sold or loans in which senior lien interests were sold (from nine loans totaling $7.4 million in the nine months ended June 30, 1997 to 32 loans totaling $116.6 million in the nine months ended June 30, 1998). These sales included, during the second quarter of fiscal 1998, a sale to Resource Asset Investment Trust ("RAIT") (a real estate investment trust sponsored by the Company) of 10 mortgage loans and senior lien interests in two other loans resulting in proceeds of $20.2 million and a gain of $3.1". I am not an accountant, but the part about deriving revenue of $20.2 million and a gain of $3.1 million from a sale to an entity (real estate trust) they appear to have some control over raises some flags. Does anybody know if there are any concerns with REXI's accounting?.....Now before anyone slams me...I am not short on this stock...Just trying to get some information..When I heard what happened on CNBC, I thought this might be a no-brainer for catching this stock on the rebound...but after reading the earnings report..I wonder if there is a valid reason for the sell-off.

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