In a day when most stocks took a beating, including those in financial sector, CIM held firm at about $4.00, down only about .01 for the day. IMO this was a great test for this stock, as I believe there will be little if any opportunity to buy this stock below $4.00 before the next divy.
I feel fortunate, as I was watching this stock daily hoping to get in at around $3.90, with no success. Then one morning recently there was a brief panic attack lasting a day, taking the price down to about $3.85, the usual knee jerk reaction to a CIM financial transaction many traders do not understand. I doubled my position at $3.88, and the stock has hovered around $4.00 ever since.
After watching the market tank today, with CIM holding firm throughout the trashing, I again doubled my position at $4.00 in anticipation of the next dividend. I do not possess one of those crystal balls so many posters apparently have, but IMO CIM will hold firmly at about $4.00 until the dividend announcement, which should result in a nice pop until it goes ex-dividend.
IMO now is an excellent time to buy CIM before the div. announcement. I see messages posted by traders who have orders in at about $3.90 or who are waiting for a dip in the near future (and I am still waiting to win over a million dollars in the lottery). IMO, based how firmly CIM held its ground today, there is very little chance of the stock dropping .10 or more until it goes ex-divy. IMO $4.00 is about as low as the price will be until it goes ex, but that is just my opinion without the benefit of one of those magic crystal balls.
What I do not understand is why it is that in a market filled with as much uncertainty, instability, fear, and fleeing to those nice safe bonds paying a whopping 2% return, more investors/traders do put their money into stocks paying dividends with a return of 10% or more, or even in the 5%-10%range, of which there are many. A trader does not have to hold the stock for life, can be in and out of the stock in weeks or even days if concerned about safety or volatility. But there is much I do not understand about traders' mentality, especially that of the Wall Street bafoons.
If anybody can tell me where I can obtain a high quality crystal ball I would be greatful, willing to pay top price, perhaps even a finders fee. No scammers selling counterfeits!
On Nov. 2 CIM closed at $4.04. On Nov 3, when the stock sale was announced, the stock immediately dropped to as low as $3.82, closed the day at $3.86. On Nov. 4, the sock closed at $4.04, and has hovered at about $4.00 ever since.
If this was not a one day panic attack by the usual emotional and irrational traders who believe the world may be coming to an end, what do you call it?
The only other thing I call it is "Opportunity", at least for those astute enough to recognize it as such.
Could it be that you are one of those who bailed out, thinking the world was indeed coming to and end and do not want to die broke?
Pappa, I am with you....my only concern is that CIM is not totally earning its entire divy...like NLY and others....also, when the market finally tanks big time, after the new year, this will go down with the rest....bad storms sink all boats...no prisoners....I have lots of silver and allot of these high divy RIETS, but caution is the word, and a quick trigger finger helps too...good luck to you...I feel we will all need it before this mess we are in as a country is over.
<<CIM is not totally earning its entire divy>>
Betcha $1 they make $0.21 or better in Q4. I believe they knew they would, with a great deal of confidence, when they declared the $0.18 divvy for Q3.
You meant she can not afford the money for a lotery ticket? Still she can afford money for tarot cards and Ouija boards and wasting her time and energy with you?
Tell her, I'll buy her a lottery ticket and split the reward with her. 8-()
Hey Pappa -
Here's a free "Bottoms-Up" software tool where an investor can vary the assumptions within the model (IF you have enough insight into the company of interest) and forecast a future PPS.
But just remember what Kurt Vonnegut said -
"In this world, you get what you pay for."
PS - But I usually just call Miss Cleo :-)
Save your money for investing in CIM. When I need stock advice, I just go to www.mysticalball.com
It gives me all the advice I need without the investment of owning my own crystal ball.
I actually did a study about a year ago and the ball beat my high priced broker by 17%....true story.