Alesco Financial, Inc. (AFN)

pytheian (54.65) Submitted: 5/05/08 4:12 PM : Start Price: $2.90 AFN Score: -40.56

27% yield on this REIT. Only two questions

1. Can they keep it up (obviously assumes no bankruptcy)?
2. Can they maintain their REIT status (otherwise potential for double taxation)?

Mgmt represents that they've:

1. Taken all their medicine (written down assets to market value)
2. Freed up cash
3. Gotten rid of recourse liabilities (which drive margin calls)

If true, this is a moonshot. Biggest red flag is that they're not buying their equity these prices, but caution is warranted since their is still a pall on derivatives.

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