There are in run off - but their current market cap doesnt reflect the income stream that is locked in. They have 3.5bil of RMBS match funded - which means the income from this on its own is worth more than the market cap. Add to this the fact that mgt has managed to roll over funding on over 5bil of their short term finances (albeit for a short term). The profit for the last q alone is with as much as the market cap (nearly). Well undervalued.
RHG Price at posting:
27.5¢ Sentiment: Buy Disclosure: Held
