If one buys now at 3.50, then after div. they are at 3.37. A spo at 3.35 wouldn't hurt so much and the p.p.s. will rise from increased earnings. Yes, they didn't do so hot last quarter. So an influx of fresh funds through a spo, since they are accretive, may easily alleviate any concerns regarding CIM. MAKE SOME GOOD CHOICES THIS TIME GUYS: SPEND WISELY!!! Buy all the way to ex-div and then at 3.35to3.30. We will be back to 4.00 by next ex-div. date. Personally, I am waiting for upcoming spo and I am thinking of possibly doubling my position. FOXY.
I agree that CIM will drop further. A spo should follow the ex-date. It will temporarily hurt the p.p.s., but since they are accretive, then book value should rise afterward dragging the p.p.s. up with it. One of CIM's mistakes was not having a spo after its last ex-date. We were well over 4 per and they could've sold more shares at 3.85 or so. They must have one (imo) this quarter to raise cash to buy more "paper". The spo cuold go as low as 3.35. But it must be done. I will buy. My concern is that CIM was buying non-agency paper. At this point the agency paper is more lucrative, but CIM's parent co. NLY would then be a sort of competitor with its own subsidiary. Whadiya think? FOXY.