Resource America Inc.  (REXI)     Rate REXI  -  Discuss REXI  -  Add to Watch List        

While it is important to always undertake a large amount of due diligence when researching an investment idea, it is just as important to make sure that after a period of time you’re not the only one who has come to the conclusion that your particular investment is so extraordinarily undervalued. 

That is why I have been thrilled that one of the premier father-son duos in value investing has been investing along side of me in the Resource America companies (REXI), (RSO) and the Atlas America companies (ATLS), (AHD), (ATN), (APL).  For those who are interested my investment thesis on Resourc

In my previous article, which can be found here, I detailed why I believe that Resource America (REXI) is extremely undervalued.  Since that article, there have been two developments that have reinforced my belief that Resource America represents the chance to own a company that will without a doubt outperform the broader market in the years to come. 

First, on 6/18 both Resource America’s chairman and Resource America’s CEO each bought $1.5 million shares of Resource America in the open market.  This brings the total value of shares purchased by insiders to over $3.75 million since March

Since late July, nearly everything related to the financial sector has been sold off by panicky investors fearful of finding themselves holding worthless paper. Securities that have been particularly hard hit have been those related to the new alphabet soup of recently invented financial instruments, such as ABS CDOs CLOs & TruPS. The firms that hold these securities have been hammered indiscriminately, while some have gone under those that were well balanced have been left behind at ridiculously low valuations.

Resource America (REXI) fits squarely into both of these categories. Resour