BV was $14.46. Let's say it went down 3% on a core basis during the quarter as MBS prices weakened a bit vs. swaps--that's $0.45 or so. Subtracting the $0.52 special dividend gets you to around $13.50. So the stock is still cheap at a 9% discount to BV with a likely sustainable 13% dividend yield.
But there is actually upside to earnings and BV from what is transpiring currently. Repo rates are down a meaningful 10 bps so far in 2013 from elevated 4Q levels. That helps new money spreads. Also, mortgage rates are now higher and refi activity is trailing off, which should help CPR speeds going forward and thus lowers premium amortization and boost earnings. Finally, MBS prices have recently rallied vs. swaps which should boost BV in 1Q (if sustained).
So the shorts should be very concerned--especially if they are betting on higher CPR speeds vs. management comments that they think CPRs are peaking.