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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: a128 who wrote (26163)	2/26/2007 5:54:27 PM
From: Madharry	Respond to of 78748

I spent a couple of hours over the weekend trying to figure out their accounting and gave up. There seem to be all sorts of ways that profits accrue prior to them being actually earned from the sale of assets. Some of the profit seems to be a function of how long the mortgages are held before they are prepaid and of course loan loss reserves and hedging of interest rate risk enter into it too. I thought about selling my small stake this a.m. but I have decided to hold and hope that someone amongst the 82% institutional account holders did more due dilligence than I did on this one prior to investing. This may be one where we spend time waiting for the shoe to drop. It would not surprise me if there were accounting changes in this business.