No its not it - will continue the "melt-up" as they get the restatement gets done. Excluding the accounting - this thing has too many tail winds low borrowing rates (rates down 60 basis points on 10 year since they last published an estimate of economic book value - improving both asset values and widening interest spread through lower borrowing rates), increasing prepayment speeds (good for non-agency because they are bought at a discount) and improving housing prices.
Its peers are all trading at premiums to book.
up 12% pretty good considering other names in the mreit space are all down look at agnc
the delist threat is now gone
book values to be unchanged by the restatement, so P/B = 0.67 makes cim look cheap vs CYS, MTGE, AGNC, NLY etc
the gap between book and price will take time to close- the restatement has just been announced, not released so there is still uncertainty
I 'd be curious what you think of MTGE and CYS though, I may switch if CIM P/B approaches 1
keep on saying to yourselves..
there is no recession
there is no recession..
i remember back in 97 that idiot Bernanke saying the US has no chances of going into a recession..
From the Washington Post, July 31st:
Fed, other central banks under pressure to curb recession risks
All -- need to give credit to Y-Blows -- his info and reasoning got me out of CIM at $2.90 earlier this year.
Y-Blows -- Keep the comments and info coming. Nothing like a lively debate with the other posters. Hope your prediction about CIM going under doesn't materialize -- would like to buy back sometime, if the company stabilizes. But the key is good, honest management--without that, investing in CIM is like walking on quicksand.
wait to see what happens to the case-shiller index once the recession goes full-on...
even with historically low mortgage rates, CIM has failed to keep their dividend stable..
keep on dreaming, F00L!
Ok, dear CIM bagholders.
Since you just don't get it, let me explain CIM's book value to you, for the millionth time:
1-CIM's book value changes on a daily basis, because the value of their underlying invesments (non-agency MBS paper) changes value daily as well.
2-FIDAC calculates book value once a quarter before reporting.
Why? because of the complexity of their MBS portfolio, the book value is no easy to calculate.
3-Nobody has any clue of what the real book value of the company is (why do you think the company is having accounting problems) specially the non-rated junk MBSs..
To think that non-rated junk MBSs have appreciated in price during a recession and a housing market that is going nowhere is just silly.
So there it is.. nobody has any clue what CIM's real book value is, so don't hold on to the numbers from last quarter because they don't mean anything.
all the id1ots who have invested in CIM based on their book value, have gotten burned.
Take a look at CIM's chart and previously reported book value numbers.
In case you didn't know, the reported book value keeps on going DOWN.. and there is no reason why that should change.. because the same scamsters are in charge to this "company"
If management hasn't changed, why would the investment results change?
Hi ublowz, Once again you forgot this is a mortage portfolio not an operating company. Prior to any de-listing the portfolio would be sold. They will either report or resolve all accounting issues with a sale.