Resource Mortgage Capital Corp. started life as RAC Mortgage Investment Corp. in 1988, when it was managed by Ryland Acceptance Corp. In 1992, it changed to its present name and decided to be self-managed - not a bad call as the last big refinancing wave was just getting under way.

But last year, the real estate investment trust showed the same slack performance as the rest of the industry, experiencing a slump in earnings and stock price. Since then, it has been steadily recovering. In fact, its improved prospects have attracted the attention of PaineWebber Inc. analyst Gary J. Gordon, who has initiated coverage with a "buy" recommendation.

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