Temper your attitude toward all the subprime write-offs you have been reading about. Nothing new about the story as we all knew they were there. This is the time of year that financials aggresively make write-downs to get the bad news out of the way and to avoid income taxes.
The key is that the company you are invested in has already recognized the loss or has no loss.
I do not believe CSE will have any announcement. Once year-end write-downs are over I think we will see a real nice recovery in the financials beginning early next year.
CSE is a REIT, which means a "write off" does not reduce taxable income. So what? So it is taxable, NOT financial statement income that matters for cash flow and dividends. In order to generate a loss for tax purposes, CSE must actually sell something for less than its (tax) book value. I doubt they have any such loans or other items to sell. Certainly they have no subslime.
I could see a sell-off in the entire financial sector in sympathy with other companies reporting more charge-offs as I do not think we are done with this for 2007, yet. Also, year-end tax selling could be going on.
Again, I do not believe it will be CSE specific (perhaps TONE to a small degree--hope not), but we could get pulled down a tad before year-end.
I am looking for a great January as I think much of the charge-offs will be dealt with from the subprime debacle, though. Lots of balloon/resets in the early part of 2008, but I think most of the risk will be identified and dealt with this year.