Dane Bowler
Value, hedge fund analyst, REITs, long/short equity

RAIT Financial: Misunderstood And Undervalued

RAIT Financial (NYSE:RAS) has a history that could terrify even the most stoic investor. Its book value has consistently dropped while share count consistently rises. While such performance has been devastating to its shareholders in the past, it may be the source of opportunity going forward. The market's false attribution of the weak performance as being continuous and fundamental in nature may be causing the stock to be undervalued. This article will reveal the true nature of the weak performance to be a one-time event and demonstrate RAS's fundamental value going forward to be in excess of its share price.

To begin, let us look at the specific historical performance I am referring to.

Historically devastating performance

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