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Capstead Mortgage Corp. Message Board

  • habitsowner habitsowner Jul 11, 2011 8:52 PM Flag

    Question, please...

    I bought CMO in 2/98. Yep. Still have what's left of it...dregs of dregs. It had a 1:2 reverse split in 5/2000 and again in 7/2001. I've in effect put it on ignore since then, figuring I'd die with it at a loss since there was no reason to sell for so little as it was then.

    However, I see CMO is "liked" again now. My question is, would anyone, if they were in my position, spend $2,000 MORE than I originally invested, to get my present basis down to $21.69. In other words, does anyone think it will ever reach $21.69? That way, I'd have on my cost basis a bit over 8% yield while I waited for $21.69. Needless to say, at that point, it would be hasta la vista, with a nasty word appended.

    Comments will be appreciated. And no, 2) I had really no idea what I'd bought in the first place which is why I let myself get into this spot, and 2) it's in the IRA so I can't take the loss on my taxes.

    Go ahead. Laugh, giggle, chortle, but please, give me your ideas on my new brainstorm.

    Thank you!

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    • Is Habit the name of you dog?


    • Habitsowner, if I were in your situation I probably wouldn't ever sell those shares. Almost all investors involved in the market in the last dozen years got themselves in far worse situations than you did with this.

      I like this company and if I were you I would pick a bad down day in the market and buy more shares. Just last Friday investors got scared and sold it all the way down to $11.24...but you had to be quick to get shares near there, or you would have had to have a buy order already in at a price you liked. Right now in the pre-market it shows that someone just paid $13.30 for shares!

      So you can get a good buy once in awhile. I bought shares on the day of the flash crash at about $8.56 and the only "mistake" I made is, I should have bought 5X as many! Sound familiar? LOL

      You are not telling us your financial situation so maybe you are going to need the money some time. If so I wouldn't sell until I thought interest rares were going begin a rise. And I might not be concerned about breaking even or getting any particular price.

      Just call this a learning experience. You've done well to hold all these years. It's possible you could become a good investor if you desired to.


    • You don't have to make your money back same way you lost it. In this space I prefer NLY.

    • I just picked out some of the best dividends that CMO has paid since you bought, including $14.60 and $8.35 all at one time. I don't know if you realize it but you have still done well by holding.

      Mar 29, 2011 0.41 Dividend
      Dec 29, 2010 0.39 Dividend
      Sep 28, 2010 0.26 Dividend
      Jun 28, 2010 0.36 Dividend
      Mar 29, 2010 0.50 Dividend
      Dec 29, 2009 0.54 Dividend
      Sep 28, 2009 0.56 Dividend
      Jun 26, 2009 0.58 Dividend
      Mar 27, 2009 0.56 Dividend
      Dec 29, 2008 0.36 Dividend
      Sep 26, 2008 0.55 Dividend
      Jun 26, 2008 0.59 Dividend
      Mar 27, 2008 0.52 Dividend
      Dec 27, 2007 0.24 Dividend
      Sep 26, 2007 0.04 Dividend
      Jun 27, 2007 0.04 Dividend
      Mar 28, 2007 0.02 Dividend
      Dec 27, 2006 0.02 Dividend
      Sep 27, 2006 0.02 Dividend
      Jun 28, 2006 0.02 Dividend
      Mar 29, 2006 0.02 Dividend
      Dec 28, 2005 0.02 Dividend
      Sep 28, 2005 0.02 Dividend
      Jun 28, 2005 0.10 Dividend
      Mar 29, 2005 0.18 Dividend
      Dec 29, 2004 0.22 Dividend
      Sep 28, 2004 0.33 Dividend
      Jun 28, 2004 0.50 Dividend
      Mar 29, 2004 0.53 Dividend
      Dec 29, 2003 0.63 Dividend
      Sep 26, 2003 0.75 Dividend
      Jun 26, 2003 0.78 Dividend
      Mar 27, 2003 0.94 Dividend
      Jan 22, 2003 8.35 Dividend
      Nov 5, 2002 1.32 Dividend
      Aug 7, 2002 1.43 Dividend
      May 3, 2002 1.65 Dividend
      Dec 27, 2001 1.50 Dividend
      Nov 1, 2001 1.50 Dividend
      Aug 7, 2001 1.56 Dividend
      Jun 29, 2001 14.60 Dividend
      Jun 29, 2001 1: 2 Stock Split
      May 3, 2001 0.98 Dividend

      • 1 Reply to biffiesbrother
      • According to my records, kept on Quicken, I've received $6,330 over the years in dividends. For a while there, because of the splits, I was only getting $2.50 per time. Almost not worth their while to write a check.

        Since I paid $19.51 per share in 1998, after the splits my basis is $78.04 and I'm presently running at loss of over $8,000. So even with the dividends I've received, I'm still underwater, not to mention the time value of money. So I don't agree that I've done "well" but I know it could have been worse. It could have gone completely belly-up!


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