Anyone following Capstead (CMO)?? Message Board

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Strategies & Market Trends : Anyone following Capstead (CMO)??

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To: jmt who wrote (157)	12/14/1998 8:32:00 AM
From: Dawgfool	Read Replies (2) of 216

jmt, I beg to differ but it is just about as simple as it has been laid out. What CMO sold to GMAC is mortgage servicing, not mortgages, ie there is virtually no credit risk. I would be shocked if GMAC does not acquire virtually all of the servicing assets and CMO will have to rep and warrant only that they haven't done any willful misconduct, etc or maybe a smidge more. In a former life I was involved in buying and selling mortgage rights and these sorts of transactions are quite clean. I am not sure about $9/shr but I am pretty darn confident of $7/shr. Further your comment about stocks don't trade at $4 when they have cash of $9. I respectfully suggest that you are wrong because they are. I think the reason this has not gone up more is because of all the shareholder suits outstanding and fear of lawyer actions. Otherwise this baby would absolutely be in $8-9 range. and it still might go there

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