Company specific issues will diminish in importance going forward, thus CIM will begin to trade with the pack. In other words, Agency RMBS interest rates, short term repo rates, and increased issuance of non-Agency RMBS will take on more importance. I'm thinking that CIM is less interesting to NLY than it once was, and that ties will be severed by termination of the FIDAC contract. A new management company will be signed (one that's likely better than FIDAC) and CIM will begin to move in a new direction. CIM has a bright future, as do the other mREITs.
I see good arguments in favor of a purchase of CIM by NLY, and good arguments for a divorce. At this time I believe it to be almost a tossup. However, I believe it's virtually certain that they will do one or the other.
You really think they will hire a new management team? My guess is that the small group of people running Chimera will continue--I think they are all close with the team main players of Annaly. Worst case scenario, is that they just get reprimanded as they have already, by getting their salaries cut in half...which by the way, I am wondering, are the salaries cut in half permanently, or just until they finish filing the rest of their delinquent reports?
filing issues are starting to be addressed & delist avoided , that catalyst event has been removed. volume was above avg. on friday price holding recent gains & then their still those whales. seems alot of interest in a Risky stock?sticking around but staying alert.