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Strategies & Market Trends : Picks of the quarter -- Ignore unavailable to you. Want to Upgrade?

To: SI Bob who wrote (5051)	1/29/2008 11:25:10 AM
From: Emile Vidrine	Respond to of 20435

The key to a higher AXR is a lower Discount rate and more favorable financing for new homes. They are a very small company but their finances are solid and since they are very small and mostly owned by insiders, they can adjust quickly to favorable or unfavorable financial conditions. AXR was crushed when the Fed began raising the Discount rate. The recent chaos and in housing and the reversal of the Fed has stabilized and favored AXR. If they give us a couple of more 1/4 or 1/2 reductions in the rate, AXR's development properties will benefit handsomely and, imo, return to high profitability. That was my reasoning behind this choice. I wouldn't, however, put too many eggs in this basket.