Research Feed

Redwood Trust (RWT) is being repriced, but the street hasn't caught up to what the business has become. At $6.59 with book value of $7.36 (0.90x book), the market still prices this as a traditional mortgage REIT sitting on balance sheet risk. The Q4 2025 earnings call reveals something different: an

Thesis: Momentum/squeeze play (1-3mo), not fundamental hold. Stock gapped 22% on operating leverage validation but 34% short interest with 10 days to cover creates technical continuation. Size small (2-3%) for squeeze mechanics, exit on momentum break. The Trade: - Entry: $115.72 (current, post-gap)