I thought my question was reasonable. I've never owned a mortgage reit, though I own several non-mortage reits. The dividend on this reit seems real good. When something seems too good, their must be some risk factors that need to be identified. I'm neither short nor long. I am simply trying to figure out how this company makes money and if it will continue. The company has recently increased their equity which is a positive sign. nlsback answered that the loss was due to an accounting adjustment. That seems reasonable, but I'm not buying until I do my dd. Merry Christmas.
I've been a stockholder the last 3 years. In addition, I am a Correspondent (I own a company that originates loans for) with the MultiFamily division and know the management. I have a substantial long position (around 9000sh)in the stock. This is a great company with talented management, a good business model and is in an excellent segment of the market (Alt-A loans). The stock is underpriced due to a couple of factors (review previous posts) and thus the low PPS and high yield. A great way to get a thumbnail presentation on the company's future prospects is to visit the company's website and pull up the pdf file on the recent FBR slide show presentation. After you do that, several of us here on the board can answer questions related to the company.
For your DD it would be a good idea to go to the IMH home site and listen to the past earnings conf calls, review monthly fact sheets, etc. I am a major holder of this stock and have been well rewarded over the last couple years. I am still a buyer and have found that the management have been honest with their comments. Because of the short attacks after dividend ex dates and earnings announcements, there has been some volatility to stock price providing opportunities for trading in short term........ if one is willing to trade frequently. Good luck in your investing.