The stock price is now $1.17/share below the offering price of $11.50 just a couple of months ago. With a yield of 8.9% and dividend that is expected to increase with acquisition of the Barclay's portfolio at 20% below book value, is anyone out there buying at this level? The big brokers went in well above the current price of $10.33.
Yes, I bought today after the dividend raise. The announcement of the new FIDAC team with global debt experience reminds me of something Starwood management said during their attempt to buy CXS. Opportunities apparently are good globally for marked down debt. I'm expecting CXS to move on this.
I'm surprised with the dividend increase and this confident stmt. regarding the future, that the price didn't hold up better.
“I’m pleased with the quarterly performance of CreXus in this, the first full quarter after our transformative acquisition of the Barclays portfolio and related capital raise. As we have discussed, we believe shareholders will see the incremental financial impact of our more diverse and sizeable platform in the second half of this year and beyond. Moreover, with the addition of the team led by Gordon DuGan, FIDAC adds a new dimension to the investment expertise and pipeline of opportunities for CreXus.”
They are essentially saying it only gets better from here. If you built your portfolio in 2002 - 2008, you are in world of hurt today (NRF, SFI, RAS), but if you are building your portfolio at current values, you are locking in a great future.