RAIT Financial Trust (NYSE:RAS)

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.

Book value is overstated, and retail and office occupancy needs to improve. They do have 2 years to fix their issues

Not smart enough for that.

S&P beater.

This seems to be a bargain. It appears to be a solid company.

Management

Currently selling at below book, and with a P/E of ay below 7, the company appears to be on the road to recovery. It is a small company, and expect a lot of volatility, and low cash dividends for a year or two.

Stock will double within next 3 months

With a book value of 0.25 and consistently improving quarters, RAS is a five star stock poised to pop.

Low P/E... Looks to be in recovery stages and stock price should improve as the overall economy improves over the next several years.

After hitting the 2 dollar bottom , the sky is the limit for this REIT. A reverse split is comming soon indicating a stronger ballance sheet.

Great current valuation , less than half of book value. dividens will start flowing this year. Stock price will recover that is a sure thing so its just a matter of time.

Beaten up sector. Seems to have weathered the storm and has the backing up from Wells Fargo - a conservative bank based on my own refinancing experience recently.

It appears this company is starting to get their act back together. If they can keep to more conservative lending practices, they should do fine.

Going up baby !

RAS share price has been under pressure because of recent senior notes which are convertable at or above 2.56 and a large short position in the stock. However this has given me an additional chance to get shares at a discount. Here are some pros I like about RAS;

1.RAS is undervalued illustrated by a low BV 0f 8.67

2. $4.36 cash per share

3.Occupancy rates for RAS's properties have improved dramatically!!

4.RAS has decreased their debt dramatically!!

5.Current economic environment is favorable for Multi-family rentals because fewer people are able to get loans and need to live somewhere while they are saving money.

6.Improving dividend. I like RAS B/c they are benefiting from MB securities but have hard assets as well. IMO this should prevent them from getting hit hard when interest rates begin to increase. That is why I sold my CIM and bought more RAS.

7.RAS has a trailing PE of 2.

8.ROE above 13 percent.

9.Large short position could be a pro, if there is a short squeeze.

At today's prices 2.26 looks very cheap. Has a ton of debt and just issued more but selling at 1/4 of book value. Insiders buying but short sellers shorting (yahoo says 11% short interest). My bet is with the book value and insiders so bought some shares in my real portfolio today. I believe we will approach book value in the next couple of years.

Was under priced, should be a $10 stock with it current balance sheet. Probably will have a dividend soon and stock will really move to the upside. $10 stock by end of 2012. That is a 4 bagger in 20 months or so.

Don't like their debt or management.