Sunday, November 27, 2005

Schaeffer gives RMBS 4.5 / 10

With typical analyst double speak, Schaeffer applauds and then hisses. You have to admire the opportunity that Schaeffer creates itself . . . if RMBS climbs, falls or even heads sideways, there will be quotes to cite in future writings. Here are a couple examples:

On Wednesday, the shares took out a troublesome area of resistance at the 15 level on rather heavy volume. This could be a good sign for RMBS going forward, especially given the strength in the semiconductor sector as whole.

There could be a bit of a bump at the 17 level, due to a heavy build up of calls. But if the shares can overcome their 20-month moving average and the 16 level, I don't see the 17 level causing too much of a problem.

Then Schaeffer blasts RMBS to cover its bases:

In conclusion, your honor, with RMBS constantly in a state of legal flux, I find it hard to recommend this equity as a buy to any investor. Compounding this legal backdrop is a lack of what I would consider to be "extreme" pessimism from the investing community. Furthermore, RMBS still has a couple major technical hurdles to overcome before making any meaningful advances. As a result, our Schaeffer's Equity Scorecard rating for RMBS falls at a meager 4.5 out of 10.

Plenty of opportunity to be right on the money.

Follow this link to Schaeffer and register for a free membership and read the entire article here.

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