I don't try and predict any market...not one of those Monday Morning QBs who always gets the score right and the correct call on monday...I am sure you can relate to that Kreskin.
Are you serious? Dripping does not add more shares. Your brokerage house goes out prior to EX-Div and obtains shares and holds them in escrow. For every share bought, someone has to sell. So net - net there are no additional shares created. The company has to have a public offering to generate more shares.
Only GOD himself can predict the top or bottom of a market so DRIP and play more golf.
Agree. The only people who are happy when you panic sell is the guy buying your cheap shares on the other end. If you are not a day trader then don't worry about the ups and down of everyday but accumulate for the 3-5-7 year period. Long and DRIP NYMT.
The answer is that when you automatically reinvest, you have no control over the price. It is better to accumulate dry powder so you are prepared during the next flash crash. Then, you deploy your dry powder in stages using limit orders.
Good wisdom also echoed by Clark Howard on his podcasts. It's a daily AM radio program but not carried by all stations. The only station I hear it on is WSB in Atlanta 750 KHz. However, you can download and listen to the podcasts online free of charge. Go to the clarkhoward website and click On Demand. Then click download and a new window appears (plays from web browser). The first minute or 30 seconds is an advertisement so you can mute and watch the time counter.
It is time to talk again about fear. Many of the investors this week made the unforgivable choice of fleeing the down turn. This is and was just a correction, NOT A CRASH. if YOU SOLD on the low point you are not the first or the only to have done so. The cause of this correction and down turn was China. The government has for years trying to get them on the ropes, I have said this for 2 years now. If you did sell out, you are going to be lamenting about how you lost the value of your 401k, or your ROTH, or your retirement. You still have time to get right by getting in before this REIT goes back to $8.00. People who are trying to make a fast buck sell and lose their money fast, over and over. Just realize with NYMT we get a very nice dividend four times a year. And you still own your shares that you owned at $8.00 that you now still own (if you did not panic-sell). Are you an investor (stay for the course), or a gambler (scared of your own shadow). We will see $8.00 again, NYMT is a solid company. Our dividend reinvestment may purchase more shares at $6.50, if it stays here buy ex-div time (Sept 26ish). Take a breath and look long term at your investment goals. This is a fantastic buying opportunity right now. Good luck to all investors.
Sentiment: Strong Buy
If you get a quote on yahoo finance, click Key Statistics in the left margin. Under Balance Sheet, book value per share is listed at 6.88. If correct and current, that puts Fridays price of 6.58 4.4% below Book.
According to Investopedia, Book Value Per Common Share is a measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Should the company decide to dissolve, the book value per common indicates the dollar value remaining for common shareholders after all assets are liquidated and all debtors are paid. In simple terms it would be the amount of money that a holder of a common share would get if a company were to liquidate.
Must install lightning rod over dry powder so not attract wrath of Khan.