I cant imagine they would do an offering right now because I thought we would see higher than 4.34 before that happened but It sure looks like there is a dump going on with no news.
If they do an offering now It will certainly look like the fix was in.
CIM just sold a portion of it's 1/28/11 offering @ market!!!
The PPS before today was certainly at an attractive level to move some additional shares.
I never saw anything that said the offering was completed and/or closed.
That was an At The Market (ATM) offering, and it's probably good for a long time.
For a company like CIM with low leverage, I think it's an excellent way to raise capital. They can easily add leverage anytime, then sell shares via their ATM over time to bring leverage to where they want.
Personally, I like the ATM option as it can increase BV that much more, as well as help sustain fat dividends.
Whether they have been using their ATM program or not is something we'll find out in the next earnings report.
For example, RWT sold off on the news too and continues to sell off today. RWT is much more effected than CIM because securitizatin is a much bigger part of what RWT does than it is of what CIM does.
Over 5000 PUT contracts bought (Sept $4). Something like this always seems to cause a dip...
The puts could be one gambler who thinks CIM will dip below $3.75. (That would be their break-even strike price.)