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Strategies & Market Trends : Calls and Puts for Income -- Ignore unavailable to you. Want to Upgrade?

To: dealmakr who wrote (1056)	7/28/2007 10:43:43 AM
From: Jerome	Read Replies (1) \| Respond to of 5891

Thanks dealmaker....on Monday I will lighten up some on AMH. No need to eat the whole thing.

To: dealmakr who wrote (1056)	7/28/2007 12:16:02 PM
From: Sam Citron	Respond to of 5891

The inordinate obsession with next quarter's dividend is unwise in the extreme. Hapless widow and orphans may be excused for focusing on the dividend instead of the earnings stream, but income investors never. By law, AHM's dividend must be 80% or more of earnings, so the announcement is effectively an earnings warning, which isn't much of a surprise given the turmoil in the housing market. I don't think it makes much sense to buy mortgage lending companies or homebuilders in the midst of a housing slump. At some point, bargain hunters may safely pick and hunt among the rubble, after cruel Darwinian forces have stressed the entire flock and culled the weak. But it is still early. The first wave of layoffs have only now just begun. Holders of stock, any stock, should daily ask themselves if they didn't already own the stock, would they be willing to buy it today. If not, they must be prepared to sell. Such decisions are best made before others decide to do the same. Sam