06-04-2007, 09:14 AM
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#78 (permalink)
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Junkie
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Host,
Some may consider this piling on but, I enjoy it. Remember our exchange on the Accredited Home Lenders (LEND), I talked about the intrinsic value of the stock based on certain assumptions and said the following in#35:
Quote:
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On LEND - I am not a short-term trader. I just hppened to pick LEND from your list and looked at it in more detail. It is actually not a bad stock. Once it gets through this subprime issue, it will be o.k. Also, your chart doesn't show it but the stock "gapped down in August of '06 on strong volume, it gapped down again in October '06 on strong volume and gapped down again in March. The time to sell was in August or October. Some large institutional investors were clearly getting out at that time and have continued selling. LEND was over-valued, and most likely still has about 20% fat in its price depending on what happens next in the subprime lending market. If it drops to about $13, that would be a good time to buy, assuming about a 6 PE, 6% growth and about an 8% discount rate . The estimated 5 year growth rate is about 10%, but analyst have started making reductions.
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Gusess what I saw today?
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By JONATHAN VUOCOLO
June 4, 2007 11:29 a.m.
Accredited Home Lenders Holding Co., which has been buffeted by problems in the subprime lending sector, agreed to be acquired by Lone Star Fund V L.P. for about $400 million.
Shareholders of the San Diego mortgage company will be paid $15.10 a share, a 9.7% premium to its closing share price of $13.76 Monday, the last business day prior to the announcement of the deal. Accredited shares rose $1.51, or 11%, to $15.27 in premarket trading, but are off 70% from a 52-week high of $51.24 set on June 5, 2006.
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http://online.wsj.com/article/SB1180..._whats_news_us
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