Kinabalu

Big Stocks Under a Buck

Bababooie:

"The TMA shareholders took a chance with the financial community. Sub-prime loans were the cause of the down fall. The inability to provide loans (services) is why investors are running away from TMA."

You obviously know nothing about TMA. This REIT is one of the best originators of PRIME mortgages in the world. They have the best delinquency ratios in the business and no subprime loans. They thought they were match funded because their loan portfolio was ARMs (not Option ARMs)and their leveraged financing was short-term LIBOR based repos. The interest rates were matched but the maturities were not. They were killed when the market repriced all real estate securities down and they suffered margin calls on their repo financing.

Now they have a portfolio of great securities, that will eventually pay off at close to 100%, on their books at 80%. Their stock will take off IF they can 1) avoid bankruptcy, which would be a terrible option because these great securities would be liquidated in a terrible market, and 2) avoid too much stock dilution. (Their lenders are extracting stock and warrants at every turn). The return of the real estate market to normalcy would be nice but is not required for success.