Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Paul Senior who wrote (31806)	8/19/2008 11:30:04 PM
From: Mark Marcellus	Respond to of 78748

Paul, for mortgage REIT's you might want to take a look at Redwood Trust (RWT). It's a Weitz holding, and he's gotten absolutely hammered on it. However, they appear to have a very strong balance sheet. Both their GAAP earnings and their book value tend to get distorted by MTM volatility on securities they intend to hold to maturity. They also produce a quarterly "Redwood Review" that does an excellent job of summarizing their business and breaking down their holdings. I bought early this year, and have also gotten hammered though not nearly as badly as Weitz. I am seriously considering buying more.