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

To: Pluvia who wrote (124)	10/1/1998 7:52:00 PM
From: Pluvia	Read Replies (1) \| Respond to of 220

Shareholders Need To Make Some Decisions.... <<<the shorts and day traders will make money in the short term but this company has been around for several years and making money for its share holders is what they do.>>> I disagree. You have no idea what the company has been doing with your money, as you will soon discover. You obviously don't read the 10Q's K's and other filings - they are chock full of pretty stinky conflict of interest transactions. It appears that the company has a LONG history of conducting business that benefits them personally - at the detriment of the shareholders. Furthermore, REXI use accounting that appears not to be in conformance with GAAP, contrary to the opinion of their auditor, Grant Thorton, who can expect some big problems very soon. I expect the company to be forced to restate their financials eliminating most all of their earnings. There are very clear reasons in my opinion for this stock to be trading at this level, and very clear reasons why the stock will likely trade much lower. Officers of a company are expected to act as fiduciaries of a company, managing shareholder's money and the shareholder's interests in a manner that best serve the shareholders. In my opinion it is VERY clear REXI management has, on a number of occasions, not acted in the shareholder's best interests, and very likely performed activities that fall into the "theft of a corporate opportunity" category. You can expect an investigation into management's history of significantly overstating earnings; as well as management's string of deals which have presented conflict of interest and other questionable activities. As I have said, I strongly advise shareholder's holding this stock to sell and find other safe havens for their capital. I don't think any shareholder will want to be long this stock during an investigation of this nature - particularly when the evidence of these problems is already so glaring. This stock is down because wall street does not trust management's accounting methods and numerous incidents of questionable conflict of interest situations where they seem to consistently screw the shareholder and benefit personally. I strongly agree with wall street regarding these matters. Just as you would not let a man eating lion baby-sit your children, in my view, you should not let REXI's management be responsible for your hard earned investment dollars. There are thousands of good, undervalued companies available right now. Holding onto this IMO mismanaged company, through what will be a very nasty, revealing investigation, is not a IMO a wise decision. All comments are in my opinion, please do your own research before making any investment decisions. Good luck investing. Cheers Steve