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To: Dale Baker who wrote (30563)7/18/2002 11:26:23 AM
From: Carl WorthRead Replies (1) | Respond to of 118717
 
i think that's the key though, you say you aren't worried about their business for a few quarters but perhaps the weakness is also based on what i asked, can they put up good numbers long term? if you buy a stock at 22 that pays 3 bucks a share and it pays you that dividend for several quarters but the stock continues to fall and then the earnings start to come down causing the dividend to be reduced, pretty soon you are holding a 10 dollar stock that pays a buck a share dividend and your cost is still 22 (reduced somewhat by the dividends you have received of course)

they are adding offices and seem to be working to capture a larger share of the market with their internet system and quick response and good communication through their mortgage brokers so that should help them but the mortgage pie is only so big and less refinances will make it grow less quickly at the very least or even cause it to shrink somewhat, that is the concern i think

carl