Investors here are not stupid, something seems wrong here. a/mkt. shares went to DOwn to $12.35. Last week I spoke with Rick (CFO) but something might be hidden here or else there's just such discontent, frustration and uncertainty with CYS that more than a few have said just screw it and moved on into something more comfortable.
Most big divvy payers do enjoy a so called "dividend run" up untill it's XDIV day during which it usually falls the amount of the div. But, often, the dividend run doesn't start till it is within a week of XDIV; especially during a falling overall market. That's all this is about. CYS announced early; there is still over two weeks before XDIV. Be patient Steve and you will be rewarded! I think we will go above 13.50 by XDIV, and you might even be able to capture the div and sell late in the day of XDIV on the usual "bounce back"!
I'm somewhat perplexed about that move also but notice it was only about 25K share. It actually did the same thing yesterday for about 55k shares. Average daily shares of CYS about 1.8 million.
Deutsche Bank reiterated a BUY rating today but no reflection in the sp.
“While our 1Q core earnng estimate is $0.33 per share, we expect 1Q core income and appreciation from forward settling purchases, or "drop income", to cover the 1Q dividend. As forward settling purchases decline as a percentage of the total portfolio, we expect core earnings to be more in line with the dividend… Given the current valuation and our earnings and dividend estimates, we maintain our Buy rating.” (You can find this article on Benzinga.)
With the 19% div only 2 weeks away this thing should start running up soon.
In case you have not been watching the news, investors are worried about japan. Some people have been moving into cash. I have been adding to cys and have doubled up in the last couple of days. Weak hands will be shaken out, but I will stay for the guaranteed 60cent dividend. Right now, I feel mreits are a safe place to be. jmho GLTA