CIM must take action on or before March 15. Will that action be:
1) File required financials and stay listed with NYSE.
2) Not file financials and go "PINK" (sheets).
3) Sell to Annaly Capital Management.
4) Announce liquidation of portfolio with net proceeds to shareholders.
5) Other (please explain)
5: CIM is delisted by the NYSE, but the process requires six months, during which time CIM can file the restatements and apply for relisting. The stock price drops sharply, but then recovers 90% of the loss within one week when investors realize that CIM is still trading on the NYSE.
If delisted, everybody sells. The equity remains depressed by the overhang of everybody here suing what effectively is a publicly traded family business.
My speculation why no insiders have purchased is because Chimera has been in their "quiet period" waiting for the financials to be released.
If the financials are released, Chimera will immediately issue a secondary because they have been returning capital to shareholders for the last two quarters.
None of this looks good except the yield-curve appears to be going back up (last Friday was 3.625 on a 30 year fixed conventional) and Leon Cooperman’s Omega Advisors seem to have increased their holding making me think that he may be privy to "fancy information" to risk holding Chimera.
My inclination is to lighten up on Chimera and wait and see how this pans out.