It's a shelf registration. This is done to allow companies to do an offering whenever they like. If they do an offering, it will still need to be announced and that can be done anytime. So this stock sells for more than book value. An offering at a price above book value will be accretive which is nice. NYMT knows this and may do it. Book value is $6.83 as of June 30th. Today's price is more than a dollar above that. I am ready to buy more if they actually announce an SPO. Just makes sense.
I'm HOPING for $7.60ish if they do one, but there's no news confirming an SPO that I've found and my crystal ball is from China and very unreliable. lol
Last SEC Filing was 08-07-14 on the NYMT home page, but hey, bring it on, the timing looks good. REITS are looking strong & better days ahead, I`ll be adding more, don`t be fooled into going short, it want last long.
Ga,SC,NC,Va,Fl,Tx,Ca ,Alaska that I know of.We were big carpet manufactures long ago out of Dalton,Ga and I have a cousin that just won a US Congressional seat in Florida but Alabama is a possibility.
Secondary Public Offering. Since REITs have to distribute 90% of their profits they will often sell additional shares when the share price is above book value. The sale normally takes the share price down so it can be a good entry point.
I could find no reference to an spo...not even in my crystal ball. Been through a couple already and always made out. I'll never have all the money, but I got enough so I need not scramble for every penny, but it is fun when you guess right and WIN it all.
Sentiment: Strong Buy
Jolly, I don`t want to irritate the board, but I have to ask if You have any relatives in Alabama?, not being funny, but serious. I like Your positive attitude towards NYMT, financials look like they can support this.
Dont' know. NYMT is not like other mREITs where they give you the core earnings which can be used to approximate the dividend. Because of all of the securitizations and CLOs, it is hard to see how much regular cash they are generating. I could be wrong but because they generate a lot of gains, I would think that they would continue with the regular dividend level and pay out as a special dividend at year-end if required to meet the REIT test.
The REIT dividend requirement is based on their taxable earnings which are determined differently from the GAAP earnings that they disclose in their earnings and SEC reports. You can't just take their quarterly earnings number and say they will pay 90% of that.