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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (43724)	1/17/1999 12:24:00 PM
From: Howard Henick	Read Replies (1) of 132070

Mike - They sold their servicing operation at a profit even though people thought it was overvalued. All they own now are fnma and freddie type mbs with clearly defined market values giving them a book of $8.50 or so and a common of 5 (going to 6 or 7) and only 2.5 times leverage. They could screw the preferred stockholders for 1 dollar by liquidating the company (paying them 11.5 instead of calling at 12.5) but that is only real risk. This company could only go into bankruptcy if they seriously change what they do. Limp along, perhaps, bankruptcy, never happen. P.S. I own this between $6.5 and 7.875 and have absolutely no plans of selling. Bought common AFTER they sold servicing, at around 4. Remember, this is my business so I think I might have a better understanding here. Regards - HH

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