The few topics involved in messages
to date seem to assume that EFC is
a Real Estate Investment Trust.
Yahoo Finance's PROFILE gives no
indication of this. Do any of you
shareholders know whether EFC truly
IS a REIT? And since its dividends
are paying out more than reported
earnings, do you know whether part
of its distributions actually is
simply a Return of Paid-In Capital
No;here's something from my broker's Web site:
Industry: FIN-MTG&REL SVS
Ellington Financial LLC is a finance company that engages in acquiring and managing mortgage-related assets, including residential mortgage backed securities, prime jumbo, Alternative A-paper and subprime residential mortgage loans. The Company's targeted assets also include mortgage-related derivatives, corporate debt and equity securities and derivatives. Ellington Financial LLC is headquartered in Old Greenwich, USA"
Go to barchart.com. 67% LT buy, but indicates short-term weakness.
Seeking Alpha says it's not for the risk-averse but admits the people running it seem to know what they're doing.
I will follow your investment in EFC. I don't have much free cash left, in my retirement account, to make a purchase. I am "all in," as far as stock holdings, and I would have to sell some of my stock holdings, and raise cash, to buy EFC. Not willing to do that, yet.
I may consider making an investment with non-retirement money, but while I love the high dividend payout, I am also "scared" of the high dividend payout, if you know what I mean. Good luck to you and your investment and I will let you know if/when, I decide to make an investment in EFC.
Steve Broke one of my vows not to buy BDC and MLP's again. In today at $22.71 couldn't resist. I figure if the CEO of Co. has that much skin in the game he'll take care of his stock and mine. I am betting on good news coming in a few days and div will be increased. My guess
I know that it is a K1 Partnership and not an REIT. I read much stock commentary on a person named, Tim Melvin, who writes for Real Money, about value stocks and stocks that are selling below tangible book value. He (Time Melvin) has mentioned EFC, as an investment worthy of further consideration. Tim Melvin also happens to like real estate (the various stocks having to do, with real estate), at this juncture, as worthy of some initial investment money, to begin a starter position in.
I certainly love the dividend payout, but of course, with such a high payout, you have to be careful, of the stock "blowing up" with any bad news.
This from my broker's web site:
"Ellington Financial LLC is a finance company that engages in acquiring and managing mortgage-related assets, including residential mortgage backed securities, prime jumbo, Alternative A-paper and subprime residential mortgage loans. The Company's targeted assets also include mortgage-related derivatives, corporate debt and equity securities and derivatives. Ellington Financial LLC is headquartered in Old Greenwich, USA."
It was begun in about Sept 2010. Barchart has a chart that shows resistance/support at about 23.09, book value 24.43 according to company. I bought it because it's so new it might be able to make money on the financial ruin of the 2007/2008 era. I'm still researching it, though, before I commit new capital. Huge dividend; not listed as a REIT from what I can see. Broker site has it as a "FINANCIAL-MORTGAGE AND RELATED SERVICES"
Since everyone seems to be asleep
out there, I will answer my own Q.
and perhaps inform a few MB readers.
EFC is NOT a REIT. It states on its
own website that it is a "specialty
finance company". It apparently has
NOT elected to be taxed as a Real
Estate Investment Trust. I am still
waiting for the Investor Relations
lady to answer my phone call (she
has been in an all-day meeting). If
and when she does call me, I will
ask whether any of EFC distributions
are simply a Return of Capital to
shareholders, and pass along her
answer to MB readers.