| zhang242463 Thu Mar 06, 2008 4:21 pm |
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If RAS is heading to bankruptcy?
goog wrote: Today's RAS report showed the truth about this highly leveraged company. Another 3% impairment of its debt holding mean bankruptcy for the company. |
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| goog Thu Mar 06, 2008 4:35 pm |
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Maybe bankruptcy is not the right word. I should say negative equity instead.
zhang242463 wrote: If RAS is heading to bankruptcy?
goog wrote: Today's RAS report showed the truth about this highly leveraged company. Another 3% impairment of its debt holding mean bankruptcy for the company. |
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| clz2992 Thu Mar 06, 2008 4:41 pm |
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where is the report you are talking about?
Its asset value is directly linked to its debt value. So if the assets it holds get impaired, so do the debts it owes. Its debtors can not force it to redeem the debts.
goog wrote: Maybe bankruptcy is not the right word. I should say negative equity instead.
zhang242463 wrote: If RAS is heading to bankruptcy?
goog wrote: Today's RAS report showed the truth about this highly leveraged company. Another 3% impairment of its debt holding mean bankruptcy for the company. |
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| zhang242463 Thu Mar 06, 2008 5:17 pm |
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someone gives an analysis here? I was thinking maybe this will be a value stock someday. The previous analysis by lzhang and bcdmm is quite convincing.
clz2992 wrote: where is the report you are talking about?
Its asset value is directly linked to its debt value. So if the assets it holds get impaired, so do the debts it owes. Its debtors can not force it to redeem the debts.
goog wrote: Maybe bankruptcy is not the right word. I should say negative equity instead.
zhang242463 wrote: If RAS is heading to bankruptcy?
goog wrote: Today's RAS report showed the truth about this highly leveraged company. Another 3% impairment of its debt holding mean bankruptcy for the company. |
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| goog Fri Mar 07, 2008 1:03 pm |
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High leverage could bring you big profit but in the risk of disaster. See how fast RAS's book is eroding. If you want some exposure to the debt market, there are a bunch of Business Development Companies on sale. Those BDCs are not highly leveraged and should have no problem weather through the credit storm. |
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| zhang242463 Mon Apr 28, 2008 7:48 pm |
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RAS up 10% today. citibank is up 30% since low. It appears a lot of people are betting liquidity issue will be over.
goog wrote: High leverage could bring you big profit but in the risk of disaster. See how fast RAS's book is eroding. If you want some exposure to the debt market, there are a bunch of Business Development Companies on sale. Those BDCs are not highly leveraged and should have no problem weather through the credit storm. |
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| ppnewnew Tue Apr 29, 2008 2:08 am |
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Zhang? Are you the same guy in CCU's Yahoo Msg board? Kind of funny since I have just noticed that you might be the same guy being nervous in CCU's Msg board. The world is too small.
zhang242463 wrote: RAS up 10% today. citibank is up 30% since low. It appears a lot of people are betting liquidity issue will be over.
goog wrote: High leverage could bring you big profit but in the risk of disaster. See how fast RAS's book is eroding. If you want some exposure to the debt market, there are a bunch of Business Development Companies on sale. Those BDCs are not highly leveraged and should have no problem weather through the credit storm. |
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| zhang242463 Tue Apr 29, 2008 11:06 am |
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for the RAS company that has stable cash flow for the next 10 years, the low market price due to illiquidity of the debt they hold probably will not matter as long as they will return to its normal value. RAS is up 50% since your post.
goog wrote: Maybe bankruptcy is not the right word. I should say negative equity instead.
zhang242463 wrote: If RAS is heading to bankruptcy?
goog wrote: Today's RAS report showed the truth about this highly leveraged company. Another 3% impairment of its debt holding mean bankruptcy for the company. |
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| goog Thu May 08, 2008 7:39 pm |
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How do you define normal value? I believe the value of debt in past several years were just bubble.
Yes, up 50%. I call this high leverage effect. If the financial market gets better, could be 500%. But I am not betting my money on it.
zhang242463 wrote: for the RAS company that has stable cash flow for the next 10 years, the low market price due to illiquidity of the debt they hold probably will not matter as long as they will return to its normal value. RAS is up 50% since your post.
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| zhang242463 Thu May 08, 2008 7:58 pm |
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there is truth in your reply. it is also true that market to market has underestimate the earning power.
I think the best bet is something like UHAL (when 6$) , SOHU (when 2$), NTES( when 1$), they are great value. I just have never picked them up. |
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| lzhang Fri Aug 01, 2008 11:53 am |
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RAIT Financial Trust Announces Second Quarter Results
http://biz.yahoo.com/bw/080801/20080801005315.html?.v=1
* Adjusted earnings per diluted share of $0.54 for the quarter ended June 30, 2008
* Earnings per share – diluted of $1.83 for the quarter ended June 30, 2008
* Economic book value of $13.90 per share at June 30, 2008
* Book value of $26.83 per share at June 30, 2008
looks like a nice quarter for them, and the div of $0.46/quarter is going to remain unchanged... |
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