NRF Q1 2009

--Net Interest income 2.7 (26.8 - 34.2) mil vs 8.2 (63.7 - 55.5) mil --Total revenue 70 mil vs 99.7 mil; income from operation -20.4 mil vs 11.4 mil in Q1 2008; Net income 102.7 mil vs 222 mil --Cash from Op is 8.9 mil vs 24 mil in Q1 2008; It purhased 25.8 mil of its own bonds; cash available at Q2 2009 is 121 mil. --The main gain is fair value evaluation of liabilities; a.for instance. Exchangeable senior notes 175 mil vs 233 mil in Q1 2008; Bonds payable at fiar value 393 mil vs 469 mil b.NRF took a hit of 539 mil in Q1 2009 in AFS securities. But it generated unrealized gain of 1,487 in bonds payable and liabilities to subsidiary trusts --Nonperforming loans 49.8 mil while loan loss reserves are 32.66 mil, 64% of nonperforming loan --Obligations: NRF is obligated to refinance 710 mil Comments: --the company is using financial tricks to camouflage its book, using unrealized gain from liabiliites; The move will backfire when either the principal/interest of these obligaitons come due or the market value of these securities increase --It only has limited liquidity to pay off coming ogligations due this year, 710 mil --Short the bond and company stock starting before the next earning release or second half of the year.