For 2+ yrs I've followed and accum DRL stock. Qtr after Qtr of non-stop improvmt in nrly all our metrics has beem met with a chorus of carping by "analysts". Twice each qtr CEO, Salomon Levis, patiently explains the demographic differences driving their ever improving mortgage pipeline - once when DRL's results are dismissed by anlysts as unsustainable and a 2nd time when they ignore Mr Levis and assume Country Wide's usual lousy results say "mortgage" so it must be the same product in the same market. (No questioning DRL's fine and fast growing banking operations in P.R. and NYC).
The quibble this time focuses on IO strips which Mr. Levis states that they use in routine rate hedging strategy. (Those can be a problem as I saw when a young CFO of a small local bank mistakenly tried them as a high yield investment rather than a hedge). With svrl simultaneous down grades including S&P (which could be a self fulfilling prophecy) maybe "this time its different". If not, we have a great bank with strong steady growth suddenly beat down to a P/E of 5 and 1.6 x book. Worth a look because until last week the score has been Salomon 100% - analysts zero.
Good thought Ray, I'll take a look. I saw the info this past week and saved it. Its true, once the analysts start, its hard to get a fair shake no matter what you do. For now, we are on the defensive and I am staying pretty liquid. pin