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Chimera Investment Corporation Message Board

  • colorado_dude4u colorado_dude4u Apr 9, 2011 12:11 AM Flag

    Try SVU

    At least it has a pretty transparent business model. NO downside risk to speak of...

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    • You did look at their balance sheet and see all these liabilities, did you?
      If they succeed in maintaining profit margins for the next 5 years they will be out of the woods with great returns, but there is a lot of risk and a lot of reward if it succeeds. do not kidd yourself. good luck, but be aware of the risk.

      • 1 Reply to ofir_menkes
      • It's called buyout.

        DF is another one...

        Already cashed out of HRB

        Just short term plays to get the inevitable pop.

        No...I wouldn't hold it long term (over a year)

        The IRS can share in the short term gain but at my bracket and with most of my income at long term cap gains rate I don't care.

        Still better than this which lately is showing "the downside risk" as the "60 day SMA slope is negative"

        Haha - just had to get that in again on the fool...

        Amazing what some will do to pump this garbage.

        Growth is what it's all about though and you are correct SVU isn't like AAPL (which has a lot of growth left).

        Keep in mind the payout here isn't qualified for cap gains rate either.

        Not saying this is the worst thing to invest in but it's far from the best. The yield is unimportant because you can't bank that - already covered that in another post by looking at T's and MO's div history. They have never missed a payment in decades and in fact have inceased over the decades.

        I'm not even sure you can reinvest here either. Another point NOT in CIM's favor.

        I would feel pretty uneasy owning this long term. It's not a "sleep at night stock"

        But it has been a decent volume/execution day trade over the past year or so. I traded it a few times and very good execution. The street like this one in that regard.

        But keep in mind they LOVE Citibank too for much the same reason though on a much larger scale.

        Eventually traders will let this one go and maybe then you look to invest and see more div history behavior especially in the rising interest rate environment thaat's already started. If this can continue payout in the next year as rates go up then I would look at it again. That's a big IF...

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