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Chimera Investment Corporation Message Board

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  • want2bik want2bik Oct 5, 2011 3:37 PM Flag

    Book Value

    Book value means nothing. What are the houses they own worth. Only the market knows and the market is saying it is a big lie.

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    • actually the value makes a significant difference. Just think what would have happened if instad of 3.35 someone had posted0.25. I suspect there would have been a big correction THAT day...

      The value is what they make off it not just what it sells for or might if they even wanted to sell. Much of thier portfolio were distressed assets they got at about .40 on a dollar. That is why they pay .54 per year at a leverage of 1.91x instead of 7.5x like AGNC.

      • 1 Reply to dgsandman
      • Intersting comment, and a couple questions:

        Please explain what you mean by leverage for a REIT. Is that the amount borrowed/outstanding debt divided by value of the properties?

        With all the foreclosures continuing, and weak real estate market, maybe the price of 0.40 on the dollar paid by CIM was too high -- are any of CIM's prperties being foreclosed?

        Any estimate as to where the bottom will be for the stock? I have been planning to buy more for a few months, but the stock just keeps falling.

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