Holy cow…Zimmer does it again. When every other REIT is posting good results, these guys #$%$ defeat from the jaws of victory and book value drops again. Will ARR go the same route as Bimini?
The issue at BMNM bimini was it traded at $85 per share at one time it now trades at 75 cents and yes they are all over ORC. RATHER than fix bmnm they changed the ticker to that bmnm and then started ORC as bimini has such a bad name i was told. Careful at ORC it is not yet trading at $85 for it to drop to 75 cents..... yet 85-.75 = 84.25 that is not destruction that is called Godzilla destruction wow
I think the book value declined because they sold all their 25-year and 30-year securities and realized a loss so they could reinvest the money in 15-year securities. Hopefully this will position the portfolio for greater profits in the coming quarters.
Added another 2 billion in assets, increased their net spread by .2%. Yes they are higher leveraged, but it is all fed guaranteed agency notes. They still have a strongly positive asset to debt ratio. This is NOTHING like bimini... honestly I dont see how bv drops when assets and net spread is increased. Regardless I am not going anywhere
Sentiment: Strong Buy