RAIT Financial Trust (NYSE:RAS)

mediadavis (< 20) Submitted: 7/10/2012 7:11:53 PM : Start Price: $4.44 RAS Score: +68.68

RAIT's Book Value is overstated based in consolidation, but is still significantly higher than its stock price. RAIT's Earnings are strongly understated in consolidation, however. It is generated at least 30 cents a share of cash and would have a dividend closer to 20 cents a share if it didn't have accumulated losses from the failure of a series of consolidated non-recourse securitizations. It will eventually work through those losses with a business that has diversified from pure loan provider to loan provider and real estate operator. It now pulls close to have its revenue and earnings from its operating owned real estate for which it has extraordinarily low average interest costs. This stock should grow in every one of the next three to four years.