NYSEAM:SIF - Post by User
Post by
truestaron Nov 27, 2008 10:45am
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Post# 15613984
OVERVIEW OF WHY SIF HAS TANKED
OVERVIEW OF WHY SIF HAS TANKED
I can tell you why this stock has tanked. The last quarter's accounting was changed to a mark to market style accounting which shows what the loss COULD BE IF SIF had to go and sell their hedged contracts into the market and didn't have contracts to sell into. This of course has no rhyme of reason but is the way these types of comapnies are now reporting, (including UEG). This showed a huge loss on paper, when in essence there was no change in cash flow or REAL PROFITABILITY. The odds of SIF losing all of their clients is 1 in a Billion or lower, (touch wood), however the perception by people who don't understand this is that they lost money, whereas their cash flow was ahead of normal, hence the SPECIAL DISTRIBUTION. Next quarter they will show a far Greater than Real Profit as this will offset back and forth over time. Institutions are buying at a 19% yield and investors who don't understand are selling. SIF is now buying back their own shares as the price is an obvious BUYING OPPORTUNITY BEYOND COMPARE.
HOPE THIS HELPS.