jimmyx...@aol.com

I'm not a trader, so I'm not going to say anything about buy, sell,
dead cat bounce...whatever.
But I wanted to point out a few facts that people seem to be missing.

First, the "$2 billion that accredited has" as indicated by Cramer.
Cramer is a smart guy, and I'm not going to dispute his analysis or
whatever, but I'm not sure where he is getting this # or why he is
putting it out there.

The $2 billion figure is wrong. Accredited HAD $2.7 billion WORTH of
loans that it sold to Farillon, but AT A STEEP DISCOUNT. They didn't
make $2 billion from the sale.
Quoting from March Accredited statement...

"The $2.7 billion of loans held for sale will be sold at a substantial
discount in order to alleviate recent pressures from margin calls."

Secondly, according to Accredited's own documentation, as of April
2007, after all of the sales from the $2.7 billion WORTH of loans and
additional shares of stock sold, etc....Accredited had ONLY $350
Million left over. They used all of the money from the wrongfully
quoted $2 billion to pay off existing warehouse lines.

Quoting from Accredited's announcement on April 2, 2007
" As a result of the previously announced sale of $2.7 billion of
loans and the closing of the Farallon term loan, Accredited repaid the
majority of its warehouse facilities. The Company terminated four
warehouse lines after repayment of these facilities in full."

The remaining assets are used for day to day operations etc.  So I'm
not sure why or where people are getting this $2 billion that
Accredited supposedly has laying around, and why someone as sharp as
Cramer would be referring to money that was publicly announced as
already having been spent...I didn't read the SEC filings, so maybe
the figure he is quoting is in there...

Also, I have read the agreement with LoneStar. I don't remember if it
was something that I was privy to as an employee, or if it was on
Accredited's investor site, or what....In my opinion, the deal isn't
'ironclad' per se.   Although Lone Star can't back out of the deal
because of market conditions, there ARE many very specific
representations made by Accredited to be true or that certain
conditions do not exist. If those representations are incorrect or
misrepresentations, then Lone Star would be, or could be, 'off the
hook' if they wanted to be.