Resource Capital Corp. is a commercial real estate specialty finance company that qualifies as a real estate investment trust. RCC invests in commercial real estate-related assets and some higher-yielding commercial finance assets. In September, 2006, the company sold off its entire Agency Residential Mortgage Backed portfolio [RMBS] and redeployed the equity into its growing and higher yielding commercial mortgage loan platform. But Mr. Market seemed to "forget" this and RSO's stock price got hurt by the sub-prime mortgage problems that surfaced in February 2007.
There has been considerable insider buying of RSO this year-
1) Leon Cooperman bought $3.1 million in January.
2) Director Walter Beach has made three recent purchases in May totalling $2.7 million.
In a May 7 press release, the CEO stated:
We continue to anticipate moving the dividend up substantially over the next three quarters as we invest the capital raised in the December 2006 offering.
RSO had a secondary offering at $16.50 per share in December 2006. I think the stock is attractive at $16.50 or less. I would look to start scaling out of RSO if the price exceeds $20.
Full Disclosure: I am long RSO.
RSO 1-yr chart: