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

To: Bill De who wrote (366)	1/21/1998 10:52:00 PM
From: hoopsville	Read Replies (1) \| Respond to of 510

With the almost certainty that Aames is going the REIT route, I don't understand why the stock price hasn't taken off. Let's see: REITs must pay at least 95% of their PRETAX earnings to their owners (REITs don't pay federal taxes). At $2.00/share current aftertax earnings and 34% tax rate, pretax earnings would be over $3.00/share. An annual payout of $3.00 basis a 10% yield would mean a share price of 30. When Aames gets around to announcing conversion to a REIT, better load up fast because it won't stay low long. Comments?