Garrett plunked down $5 meelion bucks that's the sign everyone, that's the sign BUY BUY BUY BUYB UYBUYB UBY UBYBUBUB BUY!!!!!!1
LEt me think though...Thornburg management makes $55 million a year in cash managing TMA. So for let's say the last three years Garrett has made around $150 million bucks in cash fees (plus other stuff).
And with this last purchase, he now owns 1.2 million shares, worth today like $30 million in TOTAL. Not very impressive...Buffett makes likes $100K a year and owns beelions worht of his stock. ME thinks Garrett may be playing somebody, namely the poorly informed buyers of his stock...because they have a real liquidity problem and need cash and the last remaining hope is to sell more common. I dont think anybody wants their preferred, based on the last stuff is already under water.
but that's my opinion. Otherwise this is the signal to BUY BUY BUY BUY BUY...
not if you got compensated based on the shares outstanding and mysterious profits that can only be kept up if they keep getting new money in the door...its a small price to pay. You would pay $5 million to try and keep a stream of $55 million a coming?
I am just saying you put it in context and it ain't that earth shattering, these guys publicize it and simply use it as investor relations. But they got to do it because if you look at their financials credit is deteriorating and cash is super tight...in my opinion.
i just noticed most of it has broken the issue price of $25...meaning somebody paid $25 and now is willing to let it go for less. Might make it hard to sell more for $25 to the same institutions that buy that stuff.
Look at how the preferreds of the other mortgage outfits have worked out whent there is trouble - you have no upside compared to the common if garrett's right and now is the time to BUY and all of the downside if these guys get slammed by the housing bubble.