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Strategies & Market Trends : Anyone following Capstead (CMO)?? -- Ignore unavailable to you. Want to Upgrade?

To: Rick Kunz who wrote (76)	7/23/1998 4:42:00 PM
From: Wallace Rivers	Read Replies (1) \| Respond to of 216

I was going to post about the class action, which, ironically, may have been responsible for CMO getting trashed further this PM - what a gift from the lawyers! The key to what you said is "a little bit". I would bet that, if the action(s) was (were) successful, shareholders would realize pennies/share - no windfall there. The lawyers would be the real winners. So, I would suggest that people be careful entering one of these actions. I know I will. Lawyers really have THEIR best interests in mind, not yours! In addition, the actions would further distract mgmt. from turning the company around. Believe me, I'm not defending the actions and words of Ronny boy and his gang. They made a big a%$ bet on rising interest rates, after assuring everyone in statements that they position the company to perform relatively well in a variety of interest rate environments. Mortgage servicing, ARMS, both do poorly in a declining interest rate environment. Mgmt. said, well, let's be heroes and buy a ton of IOs, which perform well with rising rates, poorly with declining rates: no hedge there! Casino Royale! Anyway, we'll see what kind of a "gift" Ronny will present us with his earnings announcement tomorrow.

To: Rick Kunz who wrote (76)	7/24/1998 12:54:00 AM
From: R Sandvig	Read Replies (1) \| Respond to of 216

I dont understand your pity. Just because a company is being sued it doesnt meant there was any impropriety. All it means is the stock went down. I have seriously been considering adding more here also. I think this thing is way oversold. I concur with the previous post re: recovery in a strike suit. At first I excitedly answered these letters from lawyers, but after several judgements where all I got was worthless paper (warrants mostly) I dont even bother to respond any more. Good luck to you but dont spend your settlement just yet.