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Chalk this one up to the overreacting shorts.  Twenty million shares short out of 56mm outstanding?  Something is wrong here. Yes, loans will go bad.  Yes, the condo market is depressed.  Yes, Corus has a lot of condo loans.

What people seem to forget is that there are assets underlying these loans.  If a $10mm loan goes bad, CORS doesn't lose $10mm - they have a yard sale and lose a chunk of their reserves.  They also have a $9 billion investment portfolio, a seasoned management team AND great insider ownership. 

This stock isn't a world beater.  But at the current valuation it will be an S&P beater; you just might have to wait a year or so until the shorts lose interest and there are headlines about another industry getting bad press and regulator scrutiny.

LBO/hedgies/private equity anyone??


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