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FBR Asset Investment Corp (FB) Message Board

  • MINCE38 MINCE38 Feb 12, 2003 4:49 PM Flag

    Why is everyone confused about B. sheet

    Its kinda scary. I own both FB and NLY both similar REIT'S, and on both boards both here and on aol, at least 75% of the people seem anywhere from a little confused to totally confused about the numbers. Projected earnings, management fees,what value(if any) this merger with FBR will really bring to FB,etc. Yet we keep buying more REITS! I for one would have thought that when FBR bought a slew of shares of FB at $33, that was the lowest this stock would ever ,ever go again! So now I am confused. What also frightens me after seeing the REITS react with the rest of the market is that I thought we were all safe from any kind of management chicanery because a REIT has to pay back 90% of its earnings to shareholders. But after reading some statements on huge compenation payouts to officers in the NLY news bulletins, I NOW SEE HOW EASY A REIT could be milked by 100 different accounting procedures "before" earnings. The fact that most of us are not clear on how to interpret announcements and such is not a good sign.

    I was thinking, suppose you were the CEO of a REIT and needed some extra cash, you mean you couldnt make a deal with either a construction company or another lender itself, to give them a great deal and profit on a loan that would screw the shareholders, but that would be reciprocated in an offshore account in your wifes, nephews best friends name in the bahamas? Come on guys. Who is really watching the fox in the henhouse. I might be paranoid but after Enron AND Worldcom, do you think REIT accountants dont have as many tricks as the "regular" companies do. Thank God we get a dividend. i personally think, after the slaughter of this market,because stocks themselves have almost no intrinsic value to a small shareholder, there should be a law passed that every company that trades must pay at least a 2% dividend. It would make it harder for more ENrons to happen. But hey, if there is gonna be an ENRON in the REIT SECTOR,I pray it isnt FB or NLY. I also own O,EQY and HR.

    FB is now paying over 16%. That is very scary because nobody gives money away. You dont think there are very savvy institutions that are aware of this huge yield and aware FBR PAID $33 a share? Yet there has been nothing but selling. Are we suckers? Someone please comment. I remember when worldcom was at 8 bucks and was giving off a 30% yield and yet it was being dumped like old trash by the hour! I called up investor relations who assured me the president had insisted the next dividend would be paid. I bought 500 shares at $7.70. When it went to $6.99 I put in my sell order. Thank God I got out! I pray FB is not another one of these.Any comments?

    Marc

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    • Only a couple,

      I got out of WCOM at $30, after the sprint deal fell through. Took a beating, as I was in in the low $40's. After watching it continue to fall, and then the fraud announcement, I felt it was the best loss I ever took!

      second, ya pays yer money, ya takes yer chances. If'n you don't play, you will never win.

      I do not believe in efficient markets, it is all about investor psychology and market makers. If you feel the psychology is bearish, you get bearish. There is just as much money to be made on a down swing as an upswing. It is like playing craps, you are not really playing against the roller, just betting on the roll itself. Fundamentals will always effect the price, but technicals work very good also.

      GL and HF

    • << Who is really watching the fox in the henhouse. I might be paranoid but after Enron AND Worldcom, do you think REIT accountants dont have as many tricks as the "regular" companies do. >>

      in fact they don't ..... why ?....because they gotta pay out most of the profits every quarter
      unlike ENE and others who could scam the system til the wheels came off the wagon .....

      << . I remember when worldcom was at 8 bucks and was giving off a 30% yield >>

      that was an illusionary moment in time ..... and i believe you refer to MCIT which is not the same animal and who quickly crashed to earth ...........

      look how long NLY has existed and how long its paid a quarterly dividend ........ its earnings are straightforward leveraged interest off pretty simple FNMA/FHLMC bonds and most of the yakking is on what they will take in profits in a quarter given virtually every bond in their 11bln portfolio is at a profit ............

      << FB is now paying over 16%. That is very scary >>

      why is that ?..... you must be a newbie here because in July , it was at $26 which was a 19+% yield ...........

      << I remember when worldcom was at 8 bucks and was giving off a 30% yield and yet it was being dumped like old trash by the hour! >>

      because MCIT in fact WAS a trash stock .......

      that you compare the illusionary dividend of a telcom stock to a mortgage REIT tells me you need to do a tad bit of homework ....

      • 1 Reply to bond_dadddy
      • that you compare the illusionary dividend of a telcom stock to a mortgage REIT tells me you need to do a tad bit of homework ....

        YOU MAY BE RIGHT MY FRIEND. i JUST GET NERVOUS WHEN IT LOOKS LIKE THEY ARE GIVING MONEY AWAY. AND DONT TELL ME YOU DONT THINK THEY HAVE ALL KINDS OF WAYS WITH OPTIONS ,ETC TO SCAPE SOME OF THE CREAM OFF THE TOP? WHENEVER MONEY IS INVOLVED.....-)

 

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