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Redwood Trust, Inc. Message Board

  • sfbizman2002 sfbizman2002 Aug 11, 2008 11:06 AM Flag

    you cant dispute CASH

    we can argue until we are blue in the face about writedowns to come or whether there have been enough. I think there has been more than enough but you can argue that every mortgage will fail..blah,blah. But you can targue about $. RWT generate $52 million in the quarter AGAIN!! That a fact mam! 33 million shares outstanding, $1.625 per share per quarter. Or $6.50/year. thats 3.25x cash flow. Good luck being short that.

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    • You might want to reevaluate that post after the FDIC closes DSL tonite. ;)

    • Oh, I don't need your wishes of good luck (been short this since the low $40s). Good luck to you being long this puppy! Losses, and more losses ... a bit more dividend, then it's over & out.

      Trying to use a multiple of the cash generated in the quarter is really so far off the mark as to not merit a response. This is a liquidating asset ... close to run-off mode. There is no business model going forward.

      What does the fact the stock is 50% off from its 52 week high tell you? Please answer this. What am I missing?

      • 1 Reply to craigla11956
      • Well what you are missing is the morons who shorted 50% of the float (was going to go up?) (Weston's article timed to mark the position for the shorts at the end of the Q) according to Bloomberg looks like most of the short went on in the mid 20's in Oct/Nov of 07, so if you got off at 40 congrats but most shorts are on at no profit after they pay for the $4.25 in divs. received since fall of 07.
        Business in run off? They invested $150MM in IGS's yielding 15-20% in Q2. Looks like cash flow going up again in Q3! Add 5-7M to the 52M, and after write offs only being 4M in the Q,,,well,,,,ought oh,,,all shorted up and no where to cover.

13.50+0.08(+0.60%)10:20 AMEDT