After a recent story, Chasing Value: Insider buying at IndyMac Bancorp, a reader, Alex, asked, "What's your take on American Home Mortgage Inv (NYSE: AHM). The fundamentals seems to be amazing like IMB's?"

It seems to me I had looked at this stock before, and since I neither wrote about it nor put it on my watch list, there must have been something about it that did not thrill me. After reviewing the matter I can see what it was. I was looking at it when it was at a high, and being a value investor passed on it. Glad I did because, as Alex mentioned, like IndyMac it came down hard from almost $40 to close Monday at $21.

Now it is a value play so I am interested. The short answer is, yes I like this pick. Is there risk, yes -- is it going out of business? I do not think so. From a recent story, JMP Starts AHM at 'Market Perform', which does not speak glowingly about AHM, one might conclude this stock is a loser. And if you bought it recently, this would be correct. But I think that stocks like this are worth a look as long as they keep their doors open for business.

Continue reading Someone asked about Amercian Home Mortgage

Someone asked about Amercian Home Mortgage originally appeared on BloggingStocks on Tue, 15 May 2007 08:15:00 EST. Please see our terms for use of feeds.