Fri, Dec 26, 2014, 2:36 AM EST - U.S. Markets open in 6 hrs 54 mins

Recent

% | $
Quotes you view appear here for quick access.

iStar Financial Inc. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • goldencowrie goldencowrie Sep 26, 2008 4:40 AM Flag

    SFI DD

    i would submit that sfi looks worse right now, but if the liquidity issue gets fixed, it will suddenly look like a much better play than rso. The reason is leverage levels. SFI has built expertise over the last 10 years in earning 15-22% return on equity using almost all first mortgages and a leverage level of around 3 to 1. Very hard to do and appears to be a business model not in the least effected by all that has happened (assuming capital markets return to somewhere near normalcy by 2010) RSO on the other hand, I believe is leveraged at about 8 to 1? It is possible that business model is now dead, and thus the dividend, while looking good now, will gradually die out unless they can figure out how to earn it on less leverage.

    comments?

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • I wouldn't say the business model is dead, but definitely on hold for awhile. I kinda ballparked RSO's dividend as decreasing a couple cents per quarter (still an absurd return) to take into account repayments used to reduce debt, eliminating that profit spread. RSO seems to be another hold until things get more rational play, but with significant cash flow in the near term.

 

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Virgin America Inc.
NASDAQWed, Dec 24, 2014 1:00 PM EST
Amira Nature Foods Ltd.
NYSEWed, Dec 24, 2014 1:04 PM EST