I plan on buying 25,000 shares on x-div date. I expect the price to drop to $4.02/03, which I consider an excellent entry point. My only dilemma is whether I should wait a week to see if they do another offering. If they do, I wouldn't expect it to be any lower than the last time, which was $3.85. If I can get in at $3.90 or so, that would be fantastic! But it they don't do an offering, the price will likely creep up to $4.06/08 during that time and I will lose out on the $4.02/03 entry price. Just curious if anybody else on this board is contemplating the same thing? It's been a long time since their last offering, so I think they are overdue. Any thoughts?
You are waiting for $3.85. Does that mean you are holding cash in a savings account paying you nearly nothing while you wait? You could go all year waiting for $3.85. If you had bought at $4.03 in a couple quarters the cost of the stock would be less than $3.85. If you have a good place to park the money while you wait tell us.
You bet! Insiders bought CIM at 4 which may show a stable entry, less dividend = supposed stock offering price, if indicated. THe point is CIM managed by conservative NLY for the most part, and also owned in part by NLY, which collects dividends, yield 14%!! I repeat 14% Today this is a great return on investment dollars in CIM and NLY. Factors are stable for the next 12 months. For any political changes, just call your congressman to not support governmental sustaining guarantees on mortgages, which may have, should have, stiffer entries to purchase homes for home mortgages.
I think you have it right. Get back to me after you refer your question to CRAMER---he has horse sense! So do you..., but its what I did today.
There will be NO MORE new stock offering announcements.
One more time, NO MORE new stock offering announcements.
Since January 28th 2011, CIM can float new shares (up to 125m) @ market price anytime they feel like it, without announcing it ahead of time.
On January 28, 2011, Chimera Investment Corporation (the "Company") entered into an Equity Distribution Agreement (the "Agreement") with its manager, Fixed Income Discount Advisory Company ("FIDAC") and UBS Securities LLC ("UBS"). Pursuant to the terms of the Agreement, the Company may sell from time to time through UBS, as the Company's sales agent, up to 125,000,000 shares of the Company's common stock, par value $0.01 per share (the "Shares"). Sales of the Shares, if any, will be made by means of ordinary brokers' transactions on the New York Stock Exchange at market prices, or as otherwise agreed with UBS.
that's for DRIPS dude
there is a 99% chance they do another stock offering after the x divi date
if they do, I am all in
currently 50k shares at 3.59
ready to up the ante a lot
only time will tell.......