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Strategies & Market Trends : Resource America (REXI) -- Ignore unavailable to you. Want to Upgrade?

To: NASDBULL who wrote (21)	8/25/1998 9:53:00 PM
From: Quinn Dunlop	Read Replies (1) \| Respond to of 220

Yes, there was an Institutional only conference call. But, the replay of the call wasn't available. Anyway, here's a summary of Robbie Stephens REXI research report released this morning. Etrade Professional Edge customers can pluck the entire report from ProfEdge website. The report was issued after the conference call this morning. Synopsis: * Off-Wall Street, a consulting firm, issued a report questioning numerous aspects of REXI's business including its ongoing viability, accounting treatment, and insider transactions. While we will attempt to answer many of the questions raised, the key points are as follows, in our view: * REXI's cash flow from the core business is approximately equal to reported earnings. REXI should exceed our September-quarter EPS estimate of $0.51. We have great confidence that our $2.90 estimate for CY1999 is low. REXI trades at 7x projected 1999 EPS. * REXI's business outlook has never been better. In commercial real estate, numerous Japanese banks are expected to liquidate U.S. assets at distressed prices over the next few quarters. In small-ticket leasing, the company is expected to announce the signing of a major contract with a Fortune 100 company in September. * We find REXI extremely well capitalized, with 2/3 equity and 1/3 long-term debt. The company is not dependent on the equity markets to grow. CONCLUSION: REXI is a combination of 3 businesses whose accounting is confusing, but is economically fair and meets GAAP standards, in our view. We believe earnings and cash flows area and will continue to be equal or better than reported earnings. REXI is our favorite pick today with a $40 12-month target. Longs: Be patient as there will be a short-covering rally in the next couple of days once the dust settles and the big boys come to scare the shorts out of their pajamas.. Shorts: Cover your butts cause big buy blocks are coming soon. Mr. Pink don't get too greedy. It is so obvious that you have a heavy short position and you are trying to scare the longs on this threads. Unless you have an inside track on REXI and know for sure that their accounting practices are inappropriate, don't spread the B.S. Note: I have been long and short on REXI the last few days. But, REXI reminds me of what happened to TWLB a couple of weeks ago.. Heavy shorting and short-covering drove the stock down and up very quickly...In TWLB's case, once the dust settled and the real "truth" realized, a heavy short-covering rally came a few trading sessions later. The same will happen to REXI.

To: NASDBULL who wrote (21)	8/26/1998 3:20:00 AM
From: Tom Murphy	Read Replies (1) \| Respond to of 220

NASDBULL....I don't normally short stocks, but this one was begging for it. I did not short it because of the BS story about some memo saying the company lost a lot of money in Asia (as CNBC originally reported)...I shorted it after reading the earnings report. Evidently I guessed right. The ticker does not lie....this stock is down 50% in 3 days...Maybe you think the books are OK, but enough of the street thinks REXI is cooking the books to tank the stock...You can't argue with the ticker. Just be prepared..If (and I say if) it turns out they are cooking the books....this stock will go to single digits fast enough to make your head spin. I truly hope that does not happen. I closed out my position at $17 5/8. I hold no malice towards other investors and hope you guys come out OK. Good Luck.