THe agency MREITs have looked like good Shorts while the long rates have been comping down, reducing the profit magins, earnings, and dividend potential. NLY and AGNC, for example, have been decent swing trade Shorts after going Xdiv.
If a day trader did not understand the diff between the Hybrids such as MTGE, TWO, and NYMT on the one hand, and NLY, AGNC, and ARR on the other, they could have foolishly shorted the hybrid MRETs, not understanding that they are buying much higher yielding commercial mortgages that have maintained their earnings.
I would guess we are getting posts from a Shorty who thought he was real clever, but is now worrying out loud.
Kid, it's not rocket science. If you are familiar with mReits then perhaps you are aware of a few traits. First they trade at around book all the way to a premium of say 10%. Second, insiders usually buy at below or at book. SPO's are typically done above book (there have been a few exceptions). Third NYMT seems to have a penchant to offer a shares at a premium - there are trading implications here for those who have a brain. For now I think they have to fork out the current dist. rate because they have to placate the new investors/capital raises. That said, at some point, the SPO machine could be turned off or the board of directors decides to declare a distribution on income rather than erode book value. In the meantime, you and Jack can count the return of capital as yield and the company can keep the SPO machine going. It's a sweet deal for existing shareholders when wanting to sell to people who don't get it.
Jack, not the brightest questions and posts but I'll attempt to answer. I've had some constructive conversations with rational investors, however, I don't think you are one of them. Yahoo is frought with posters trying to talk up a stock with little fianacial thought. You fall into this camp. Sorry, that's just the way it is and I'm not here to watch you struggle. Telling someone whether they will be in or out of a stock is stupid - that may help your cause if you could convince me or others to buy or sell. You're just not that persuassive and I don't think that's what these forums where originally to do - but thanks to that's what they (and now you) have become. Oh well go ahead and get the last word(s) I'm done talking with you and good luck in support group.
I think the point you missed is that this likely won't get to below book, so you won't be selling anything to anybody because you'll never be buying it in the first place. As for Return of Capital, take that nonsense back to the CEF boards where it has some revelance.
But why do you bother to post your personal investment itches, instead of info and insights helpfulto others on the mb? You will be missing out, just as I observed, but why do you advertise your problem?
Vanguard is one of the best, if not the best, mutual fund outfits, and it's the largest holder-- your right about low turnover potential from the institutions.
Trading price will head higher to yield settles back to about 14.5% over the next few months, given no new world wars.
Given that NYMT current float is only 17 million shares, 10 million is a big increase.
Also, based on yesterday's after market sales, looks like lots of folks were expecting offering price of $6.75 instead of the $6.65 announced this morning.
I'm going to be cautious about buying right away.