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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (43724)	1/17/1999 12:24:00 PM
From: Howard Henick	Read Replies (1) \| Respond to of 132070

Mike - They sold their servicing operation at a profit even though people thought it was overvalued. All they own now are fnma and freddie type mbs with clearly defined market values giving them a book of $8.50 or so and a common of 5 (going to 6 or 7) and only 2.5 times leverage. They could screw the preferred stockholders for 1 dollar by liquidating the company (paying them 11.5 instead of calling at 12.5) but that is only real risk. This company could only go into bankruptcy if they seriously change what they do. Limp along, perhaps, bankruptcy, never happen. P.S. I own this between $6.5 and 7.875 and have absolutely no plans of selling. Bought common AFTER they sold servicing, at around 4. Remember, this is my business so I think I might have a better understanding here. Regards - HH

To: Knighty Tin who wrote (43724)	1/17/1999 12:29:00 PM
From: Howard Henick	Read Replies (1) \| Respond to of 132070

P.S. They can not cut preferred dividends. They can only choose to not pay them in which case they accumulate to be paid later (cumulative preferred) and can then only pay common dividends after they pay back all preferred dividends accrued but unpaid.....

To: Knighty Tin who wrote (43724)	1/17/1999 3:05:00 PM
From: Tommaso	Read Replies (1) \| Respond to of 132070

Here's hoping your April 40s on MU work out. A 50% crash by April, putting MU at 36, would get you five times your money, and any fluctuations in between could get you a quick double or triple. I think I will buy 2001 LEAPs at 50, which cost more than ten times what the April 40s cost, but which I think have an extremely high likelihood of making me at least 50% on my money. Should MU head into a crash equal to that of the computing stocks of 1969 (80%), and should I have the courage to hold them through the decline, I could well quadruple my money. However, if you get your five-fold increase by April, I would also have probably doubled my money, which would not be bad. So all best wishes and power to you. And hopes that my arithmetic is more or less correct.