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 : Ocwen Asset Inv. Co (OAC) -- Ignore unavailable to you. Want to Upgrade?

To: Labrador who wrote (4)	12/1/1997 10:46:00 PM
From: KatayamaGorobei	Read Replies (1) \| Respond to of 64

Thanks for the input, Bob. I'm definitely inclined to be patient and let the dividend roll on in. I mean, jeez, if they hit the estimates in '98, the yield will be over 13% on an 18 dollar stock. Regards,

To: Labrador who wrote (4)	2/6/1998 6:20:00 PM
From: George T. March	Read Replies (3) \| Respond to of 64

Well Bob, I hope you bought this stock for the yield, because the principle is in for some hard times. The stock is down about 3 points today with over a million shares traded and will probably be lower next week. The apparent cause of this downslide was the press release and conference call by Owen Chair Erbey and Pres Reich telling us that they will be chalking a loss in the quarter of some 20+ cents and 3 cents for the next quarter. More than the announcement, it was the way they answered the analyst calls. Not exactly inspiring. The problem with this business is that the management is not sure of what they are doing. Their fortunes are totally dependent on the yield curve and a spread between the libor rate and the ten or thirty year rate. If it is inverted or flat, they are in a losing position. Long term there purchases and sales of mortgages are calculated to provide a nice yield of over 15%. And if the prepaid are not too bad, they will make a good return. Unfortunely, the management is not as good as you or I in predicting rates or the curve. You should take the time to listen to the conference call. The tele no is 1-800-677-8851, code 1515. It's both interesting and informative. They say the dividend for 98 is probably secure, but I don't have much confidence in their forecasts. I would be interested in other opinions of the conference call. These mortgage reits are great vehicles for profit or lose. Regards...george