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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (94582)	11/13/2007 10:13:27 AM
From: GraceZ	Read Replies (2) \| Respond to of 306849

Is RYL a buy? What is your objective? It's higher now than it was the last time I asked. Yes it is! The other change is that they are now a hare's breath away from having their debt lowered to junk status. Frankly I'd rather buy companies whose price has fallen and whose prospects have improved than the inverse. There is a 50/50 chance some public HB declares BK in the next six months to a year. The whole sector would gap down in this event, making your short term risk reward about even point-wise, 10/10. I like to buy when the reward is at least double the risk. They are still trading at a price that is 13 times the low they hit in the last housing debacle 16 years ago. The company is worth maybe 4 times what it was worth back in the 90s. It might be a trade (flip a coin) but it sure isn't a fundamental buy yet.