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Non-Tech : Aames Financial (AAM) - Undervalued or what??? -- Ignore unavailable to you. Want to Upgrade?

To: Bill De who wrote (361)	1/13/1998 5:00:00 PM
From: Bankceo	Read Replies (1) \| Respond to of 510

The sector is out of favor. Look at MoneyStore as the benchmark. DIsaster. The elimination of gain on sale accounting will reduce real earnings in many company's by a half. There may be pressure for companies to do just that. Accordingly, AAM is a dead duck until positive earnings transpire, the gain on sale situation is resolved. Also, interest rate reductions continue to put pressure on prepayments which will hurt earnings. At $12, I wouldn't sell short and I wouldn't back up the truck with cash either. Accumulate is the most I could recommend and only with a small portion of your portfolio. Making earnings estimates will help only if HOW they made it is through conservative accounting.