Anthracite Capital is Re-Inflating

2. Anthracite was profitable in the first quarter, just not as profitable as it used to be. If you optimistically flat line the profit figures from the first quarter into the future, your P/E is still 0.685. Note that in the first quarter of 2008, net income attributable to common shareholders was twice as large as any quarter as far back as I can see. So, comparing the first quarter of 2009 to the same period of 2008 isn't fair to begin with. The bottom line here is that comparing first-quarter income for 2009 to Anthracite's history, then things match up but the revenues are weaker.

So, what am I doing about it? I'm buying. I probably already have a sizeable position. I'd say you could add this to my suggestions for 100% in 1 month, but that would be an understatement. I'd be surprised if AHR didn't see $2 by June 18th.

Disclosure: Glen Bradford and his investors own shares of Anthracite and Citigroup.