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

To: Madharry who wrote (27560)	8/3/2007 12:29:09 PM
From: E_K_S	Read Replies (2) \| Respond to of 78753

Hi Madharry - I have been monitoring RAS perhaps for a speculative buy. It appears that RAS may have quite a bit of this sub-prime debit in the form of tranches and special equity holdings from marginal home builders. The Street.com provided a good overview on RAS's recent earnings call and even they were unable to quantify the extent of RAS's holdings and special entity deals. RAIT Fails to Shed Light on Debt Deals thestreet.com From the article:"...The worries about some of these CDO deals are that they are just a mix of a lot of risky debt. As skeptics say: It's similar to putting horse dung and other garbage into a grinder to make some sausage. Technically, a BBB tranche is considered investment grade. But that doesn't mean there isn't a lot of questionable debt underlying that tranche...." I may nibble at a few shares towards the close for a very speculative one or two day trade. The question is what is the "real" value of the debt RAS now holds and do they hold a leveraged position of additional debt that they have yet to sell and at what discount. This stock could go much lower on the uncertainty of their portfolio debt. There may be a "value" play here as the market typically over reacts but at what price? EKS P.S. I have an order to buy some WM if it can crack $33.50 (a multi year low) and then buy a few shares of RAS to complement my speculative urge.