TARR

**howiez** Fri Dec 15, 2006 11:00 am

TARR
Blast, can you shed some light on TARR? It looks like a good value pick, trading below NAV, lots of insider open market purchase and substantial insider holding. I have not got any chance to look at its business model though.

**blast_investor** Wed Dec 20, 2006 12:10 am

Re: TARR
Hi great_deals_z:

I have not studied this stock that much and don't know that much on its business either.

However, from quick look, I agree with you that this stock does appear to be potential attractive pick.

First of all, it will spin off homebuilding division in 2007, so it potentially is a spin off play.

TARR also has large insider buying recently from its largest insiders.

The potential trouble sign is its high leverage. It is on the high side.

great_deals_z wrote: Blast, can you shed some light on TARR? It looks like a good value pick, trading below NAV, lots of insider open market purchase and substantial insider holding. I have not got any chance to look at its business model though.

**shu_wd** Wed Dec 20, 2006 12:51 am

Re: TARR
Hi Blast,

what is the "high leverage" you mean here?
blast_investor wrote: Hi great_deals_z:

I have not studied this stock that much and don't know that much on its business either.

However, from quick look, I agree with you that this stock does appear to be potential attractive pick.

First of all, it will spin off homebuilding division in 2007, so it potentially is a spin off play.

TARR also has large insider buying recently from its largest insiders.

The potential trouble sign is its high leverage. It is on the high side.

great_deals_z wrote: Blast, can you shed some light on TARR? It looks like a good value pick, trading below NAV, lots of insider open market purchase and substantial insider holding. I have not got any chance to look at its business model though.

**blast_investor** Wed Dec 20, 2006 9:52 pm

Re: TARR
Meaning it has large debt relative to its market cap value.

High debt company usually is called high leveraged company.

shu_wd wrote: Hi Blast,

what is the "high leverage" you mean here?

**blast_investor** Sun Dec 24, 2006 12:12 am

Value Investor Club has pretty good write up research on this stock TARR:

http://www.valueinvestorsclub.com/value2/VIC/guests/view-thread.aspx?delay=45&id=2525&more=dtrue

**blast_investor** Sun Dec 24, 2006 1:01 am

Tarragon CEO was reported to have reputation problem as described in this article:

Tarragon History:

http://www.fundinguniverse.com/company-histories/Tarragon-Realty-Investors-Inc-Company-History.html

I would be extra cautious when CEO and managers were suspected to have integrity issues.

**lzhang** Sun Dec 24, 2006 2:08 am

Hi blast,

that is excellent info. In the meanwhile, I do not believe that once a cheater, always a cheater. The fact that this CEO and his family were buying in the whole year 2006 is telling, the fact that they control more than 30% of the company is telling. The fact that homebuilders are depressed is telling.

I do not think we are looking for the perfect company. we are just looking for undervalued companies for whatever reasons. Good management is essential, and crucial. past history is important, but I think money is more important, and his current and future behavior is more important. So far, I do not see any wrongdoings the current CEO has done to this co, or he was convicted of anything.

it will be great if the price can go lower, but I do not see that is happening. Maybe we need some more negative news on homebuilders so we can have more chance to buy. I just wish that is coming so I can buy more homebuilder stocks (not just tarr).

blast_investor wrote: Tarragon CEO was reported to have reputation problem as described in this article:

Tarragon History:

http://www.fundinguniverse.com/company-histories/Tarragon-Realty-Investors-Inc-Company-History.html

I would be extra cautious when CEO and managers were suspected to have integrity issues.