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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (66865)	8/27/1999 11:41:00 AM
From: Knighty Tin	Respond to of 132070

Ike, they are a mortgage derivatives co. that has not done very well during periods of time when rates decline or when they rise. However, it is cheap relative to its nominal earnings and the dividend appears safe, if, and it is a big if, the accounting for brain dead mortgage derivatives is conservative. So many of these cos. have blown up due to accounting irregularities that I'd be reluctant to use them as income plays. Mortgage investors never seem to have a market environment that works in their favor. My recommendation is that if you don't know the co. and the people real well, don't buy this sort of thing. And, if you do know the co. and the people real well, it is unlikely you will buy it. <g>