I hear what you are saying and many of your comments have been helpful, especially those of bobgrant but since the offering price for those 100-115 million shares is set at 3.65, why buy now?
The offering is already placed. It is not some pile of stock waiting to be put on the shelf for $3.65. It was sent to Credit Suisse for $365 million.
Your question is unanswerable. It presumes that any of us can accurately predict the future, which is unknowable. If you predict that a better, lower price will be available, wait for that. If you predict this is as good as it gets, then buy now.
Personally, I view it that the new lowest possible price is $3.65, since Credit Suisse will buy at that price. That may always change, but currently, the price is somewhere above what Credit Suisse paid, and the $3.82 close from yesterday. A lot of people are buying the lower priced shares.
My prediction is that todays price is your best buying price. Good luck.
The only important thing here is that the divendend stays the same.The added shares will be offset by investment.Should run up above 4 again prior to next divd.NOT a bad divd and the FED virtually guaranteed that we won't see any nearterm interest rise.
I just recieved a call back from Inversor Relations. They tell me that some of the 75M shares today (as of 3:30) are from the 100M offering. So it is possible that this does not go to $3.65 or lower. This information was good enough for me; I picked up a few at $3.69.
I bought 1000 shares a few weeks ago, and just added 1000 more today @3.70. I want to purchase an additional 1000, but decided to see where this will go in the next few days. It has been very informative reading the input from you guys. Vicki
Last time they did an offering the stock price dropped from 4 to around 3.65. Then it slowly recovered back to 4 as the next ex-div date approached in anticipation of the juicy yield. Given the 17-plus% yield, this should attract buyers to soak up the oversupply. Added to my position today at 3.69. Also like NLY and MFA.