To: Wallace Rivers who wrote (3662 ) 3/29/1998 1:42:00 AM From: Paul Senior Read Replies (1) | Respond to
Wallace Rivers: Could you expand or expound on REMI? (I need a push here to go further with it.) I see what does appear to be a huge spike in volume (per Yahoo). I see where it is ranked #1 by Yahoo's Zack's three analysts. I see (per Yahoo) where it is in the same bus. as some companies I already am somewhat familiar with (like GNT which has been discussed here, PACC, a little gem, some others too). I see where some big investors have apparently recently taken positions (Ameilia Family Trust of William B. Ziff, Jr. buying 5% reported on 3/23). BUT WHY? Why is all this happening? The bv, psr, pe all are just ... blah. ROE is slipping. The stock is trading near its five year high. Okay, I see where analysts predict over 2.00 sh. next yr. giving a very low "forward" pe-- but I don't believe in predictions (-g-), and I surely do not see why earnings will be so great. As interest rates continue to come down (yes, they could go back up, but then there'd be less refi. bus.), the drop has to be smaller and smaller and the profits for REMI less and less, is that right??? (Not arguing with you. I just can't figure it out.) One thing for rates to drop from 8 to 6%; quite another to drop from 6 to 5.5 is how I'm looking at it. (And for just how long can this continue?) And..arrgh...subprime.. I'm learning to hate that word. Getting stung for the second time on subprime auto loan co's. Okay, people not so willing to walk away from their homes, but we've got lots of industry problems with the accounting in packaging these subprime home loans for resale. Wallace, what am I missing here with REMI? Paul
