Stephen Frankola sends: I just took a chance and bought a tiny position in Thornburg Mortgage (TMA). I don’t have the time to write a full analysis now, but I think that the company is too good fundimentally to be trading this cheap. One kind of debt is killing them, and it’s causing margin calls to completely disable them from operating. But the vast majority of their portfolio is made up of prime and super-prime debt, and I think that, if nothing else, a bigger company will be willing to snatch that up at this price.

Bought in at $1.35.

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