Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: MCsweet who wrote (156)	12/12/1998 1:18:00 PM
From: jmt	Read Replies (2) \| Respond to of 216

Please demonstrate what that cash value (less liabilities) is after the aquisition. And what the credit quality and prepayment risks are with the piece of the portfolio that is left. One would thing GMAC took the cream and left the problems credit behind. This is a complicated issue to analyze accurately. But I still don't see the net cash at $9 per share as has been mentioned. And there are reserves held to indemnify GMAC. For how long?? jmt

To: MCsweet who wrote (156)	12/12/1998 2:08:00 PM
From: James F. Hopkins	Respond to of 216

MC; I'm more a strategist than an analcyst , I like cash value more than book value, or earnings, and I have never lost on buying cash at a discount. Monkey business abounds in the stock market, & there is no telling what management might do with this kind of cash. Hell if it were me at the helm, I'd try to get unlimited buy back approval , with that I've seen some stocks drop their float so low as to go through the roof. ---------------- With a big buy back they could make the lawyers that want to hammer her look like fools, however at this time she only has authorization for a million shares. ---------------- I don't think this management is of that type, or that it will happen, but I have seen it by others in the past. Where certain companies dried up their float, and pushed up the stock price to unbelievable levels.. They then used the stock price as collateral to borrow cash at cheap interest rates. I've really seen some dillies. I really don't think CMO will go that route, but don't rule it out as if they were to do it; forget reality, she could go to over $100, shorts would pile on and get slaughtered as she dried up the float. She is in a good position to play hard ball if she has the know how and the guts. Jim