Arlington Asset Investment Corp. (NYSE:AI)

CAPS Rating: 5 out of 5

An investment banking firm that provides investment banking, institutional brokerage and asset management services and invests as principal in mortgages and mortgage securities and merchant banking investments.

Recs

1
Player Avatar russ514 (< 20) Submitted: 10/15/2009 8:11:29 PM : Underperform Start Price: $7.42 AI Score: -173.94

Overall the Management Team is young and inexperienced. No past performance record in the current Economic conditions and hence the 20-1 reverse Stock split to make a failing operation appear solvent.

Member Avatar jsbacker (91.93) Submitted: 10/19/2009 1:50:47 PM
Recs: 0

Look, there are plenty of management teams that have never been through anything like this before. Personally, I don't think AI did the split to appear more solvent as you say. It is not a widely traded stock to begin with, so they should know they aren't going to fool anyone. They did the reverse split to attract institutional investing, which has worked so far. Post-split volume is up compared to pre-split volume, and the share price has increased 50% since I purchased them. These institututions, which are buying AI in droves (check major holders on msn) probably know something you don't, and they aren't making these kinds of big bets on "insolvent" companies because they want to lose their money. The fact of the matter is, AI sold their FBCM stake to reinvest in distressed assets, and in a few quarters they are going to capitalize on those investments and AI is going to crush the market going forward by being up 500% from where it is now.

Featured Broker Partners


Advertisement