Is RWT Redwood Trust a good value investment?

First let me say I just sold all my Redwood Trust Inc $RWT positions.  Redwood trust was part of my value portfolio for 7 days short of a year.. Although I could have held the stock for a few more days I had not reinvested the dividends so the gains were minimal and with the uncertainty going forward with the fed it could have proven a disaster; and still may prove to be a disaster when the Fed starts QE3 or what they are calling stealth QE3.

Redwood trust is a good REIT, it just faces a lot of challenges, some of these challenges I waited patiently for close to a year to see if they were handled in the federal government level but it seems the government is doing just about everything and anything to keep the private sector from becoming the dominant force in housing.  They are artificially keeping the rates down, introducing more regulation.. In fact as I write this only 12% of the 400 expected Dodd-Frank rules have been introduced.  The results and affect these rules will have in banking and financial companies like Redwood Trust are really an unknown at this moment.  With all the new rules these private MBS holders my be left holding an unwanted bag of securities.  Here is a link to a good article on Dodd-Frank

http://www.marketwatch.com/story/one-year-on-most-dodd-frank-changes-still-to-come-2011-07-21

At this moment with the market continuing to climb higher and higher the risk also climbs higher and higher,  With that in mind although I feel RWT is a good investment I just don't feel it is a great investment and right now we only want to hold on to investments that have a low risk-high reward characteristics.  RWT is the kind of company whose stock will depreciate with the market but not appreciate when the market moves up and cash may be better used for investments that can return higher reward when a correction happens. To put it simply no one wants a stock that will drop when the market drops but may meander around the same price range while the market rises. It's time to remove some risk from the table, For those who aren't value investors; yes the higher the market goes the higher the risk goes, the lower the market goes the lower the risk.