Opinion on  Alesco Financial Inc. (AFN)     Sector: Services  >  Industry: Real Estate Operations
Risky with reward

I picked up AFN at 5.85 back in August 07 and rode her down. with two dividend payments and adding more shares at 3.66 my cost basis is now 4.11. She currently PO 37.60% and there is talk of a cut in dividend. Still far above what MM pays out. I have decided to sell CC on her. The market supported AFN just above three. A great buy at this price but only a portion of your portfolio. If I am called out I am still a winner.

I knew it coming out of the gate. A stock that pays out 30% dividend must be risky if not suicidal. As the money kept rolling in and the rumors of a cut in dividend became a reality the Anal List kept predicting it's demise. I held tight. The tide seems to be out now and I am just waiting for the surf to start pounding the shores again. Maybe not this year but the next full moon down the calendar. At 30% plus reinvesting dividends, some, and waiting to play options it looks like a great call. Lets' wait and see.

AFN continues to surprise nay sayers. She is and will continue paying her quarterly dividend one dollar per share and just seems to languish between 2.85 and 3.20. Trading has slowed to a more normal range and MF seem to be slowly moving in. My cost average is now down to four dollars and CC are still out of reach for my interest. When the current housing scare subsides, and it will, it will be to late to pick up this stock. I will be adding on around three or less.