I originally bout in Dec at $11.02 and just doubled up at $12.38. Even if we take a dip on the lock up expiration, we go higher in the long run. The yield, even if trimmed back a bit, is just too appealing to pass up!
The following are directly taken from their earnings report [see transcript] and I take them as facts:
17.8 million shares of common stock in Silver Bay Realty Trust Corp. (SBY) are owned by Two Harbors. These shares are subject to a 90-day lockup, which expires in mid-March.
Subject to the approval of the Board, the shares intend to be distributed to the shareholders by means of a special dividend at some point following the expiration of the 90-day lockup period.
The dividend will not remain $.55.
The $0.55 dividend was also, we believe, important in terms of timing for our shareholders, given changes to tax policy in 2013. It should not be taken that this dividend level is representative of our ongoing earnings power.
Tom Siering - Two Harbors Investment Corp. - President, CEO."
Bought in a week ago increased today. Only researching MB reits. Seems best buy in this excellent area. Considered AGNC but they are diluting with new shares and NLY seems a bit overbought.. TWO is third but ready to pop.
Ouch, you of all people should know that the stock is over priced. Why would you add more right at its 52 week high, after a earnings call stating that their dividend would likely decrease in 2013? I just sold my position and I may be wrong but I think there will be a much better time to establish a position in Two at under 12 dollars.