I'm not new to REITs, but have traded mostly AGNC and did really well on their offering and was considering picking some up over here for a nice play, but is anyone familiar with what's going on? I've never seen a stock put on hold for an hour with no trading. Also, I see on L2 that the spread is 3.89x3.90 and aggregated size is about 1,500,000x530,000 shares. Never seen anything like that before, is that truly the markets bid/ask or is this being held up by some regulation to prevent a landslide? Not looking for a debate, just an opinion from someone experienced thanks
CIM is not a typical REIT. It's more of a financials business (packaging and selling mortgage-backed securities) that chose to be taxed as an REIT. Possibly the "never seen before" situation is because of new systems in place after the flash crash. I don't know if anyone knows that to be the case for sure though. Last I read these systems were being given a test drive on only the most volatile symbols and cim isn't all that volatile, but maybe I'm behind in the news on this one.
A possible downward driver to be aware of here ise the fact that the CEO has *just* stated they didn't plan another offering and now they're having another offering. (Read the latest 10-Q) Even if it's their best biz choice, the SEC tends to frown on that sort of thing, which adds to the uncertainty about cim.
CIM is placing a 125 million share offering to raise money @ $3.85 pps. This is a good ploy for CIM. Added more to my position this morning. Great stock to play for both appreciation and great dividend.