In all honesty, I wouldn't mind if they didn't pay a dividend if...

In all honesty, I wouldn't mind if they didn't pay a dividend if I had bought them at pretty much any point because of the capital gains alone. I know that no one likes the way that REH BOD operates but at the end o the day, look at the results. $3-$10 over 5 years is impressive by whatever measure you use.
I actually don't use a heck of a lot of fundamental analysis on individual companies, rather I look at macro economic trends and invest in half decent companies accordingly. Why? For exactly the reasons you state. Sometimes it makes no bloody sense why a company is worth what they are worth, so why would I spend hours looking at models trying to find an outlier in a world where actual valuations don't even seem to matter? I'd rather just invest according to peoples sentiment. its a lot easier and a lot faster.
I agree that they will drop to about $8 soon enough, but I think it will push $12 before it does.