I purchased 1,000 shares of WMC on 3/14/13 (500 @ $22.47 & 500 @ $22.60). An small time analyst also downgraded it on 3/14/13. At this point, it appears that the stock has "shaken off" the questionable downgrade and closed Friday @ $22.74. The stock will go ex-dividend very shortly (date not yet disclosed). I am consdering purchasing another 1,000 shares, but have some concern about how thinly traded this mREIT is and the possibility of a bigger house analyst trying to get it to pull back prior to the yet undefined ex-date. Thank you in advance to anyone with a view on the above.
Picked up 100 contracts a couple weeks ago based on a strong 4th quarter. Wish I had bought more, up very nicely since then. That analyst actually gave a nice buying oppty. I think there's a good chance of them increasing the div to .95 maybe even $1. That should get it on more investors radar and maybe move it to the $25 range. WMC is like an infant MTGE waiting for it's pps to develop.
FWIW, here's my two cents. The divvy announcement should come out sometime next week with an EX sometime the last week of March. Since they paid a .22 special divvy in addition to the regular .90 at the end of last Q they should announce at least .90 and maybe a little more. I bought a few dozen Apr 22.28 calls with a 22.95 BE. Because this is still a relatively new issue, I did not jump in with both feet. GLTU whatever you decide.
I thought it was a misprint when you said you bought 22.28 calls - just checked and saw it was not. I trade more than a few options and have never seen a non nickel price denomination. They seem a tad pricey based on the volatility.
WMC is a relatively new stock, and probably will suffer a little from the lack of a track record. Having said that, I try to find a stock or two with high potential that hasn't been discovered by the masses yet. I put WMC in that category because I think it has not yet reached it's fair value. It is very much like MTGE: hybrid, paying $0.90, great 4th quarter earnings report, and even paid an additional $0.22 special dividend in 2012 which MTGE did not. MTGE sells for $26 which is where WMC should sell, if not higher, so it could go up $4 - $5 yet. I'm not worried about that little analyst; there are others who think WMC is already looking like a top pick. I tend to bet a little more than some: my 30,000 shares are already up over a dollar in a month. I think the divy stays at $0.90, although they made enough core earnings to boost it a little. GL.
Oh, if you want a stock that will develop a little slower, but doesn't need constant watching, check out NMM. I bought it before Cramer recommended dry shipping recently .... Cramer just recommended the wrong one. NMM pays 12.5%, and could go to $40 in three years if the world economy improves as supply of ships is now declining.