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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: lexi2004 who wrote (59321)	8/14/2008 11:49:34 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 59879

Definitely heading to $5/share and likely higher.. MGIC, which co-owns a stake in Sherman Financial, just sold it back to Sherman for $209 Million today (apparently for a major discount).. But it seems that Sherman also has an option to buy out RDN's stake by Sept 19th and that will likely not be less than $200 million. Right now Sherman is paying out a quarterly dividend to RDN of $19 million, which equates to an annual dividend of 40% on $200 million. That's more than enough for Sherman to finance buying out RDN's stake. The question is what price their option is for. RDN certainly doesn't need the money at this time.. They have a Billion in cash, very little exposure to non-prime mortgages, and a book value of between $30-35/share. It's definitely going higher.. ;0) Hawk