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

To: Scott Mc who wrote (4320)	6/19/1998 8:19:00 PM
From: Wallace Rivers	Read Replies (1) \| Respond to of 78704

OK, this is about as close to a hype job that I'll post on SI. I've posted on this thread before re: Resource Bancshares Mortgage (new ticker RBMG). It continues to enjoy what I feel is an extraordinary business environment (low interest rates and refis are booming). Co. just released May operating numbers, which I thought were great. This stock should, at the very least, command a 10 pe on '98 estimates ($2), which they could easily blow away. Countrywide Credit just released their Q numbers, which blew away the estimates. So the long bond continues rally mode today (continuing to make refis attractive), and what does the stock do? Trade down below $17! Anyone care to tell me what I'm missing here? I realize this is a cyclical stock, thus won't carry a premium multiple, but something seems amiss in this instance.