Mine is just another obscure voice here. I recently sold my IMH preferreds at a small loss. But I read the board regularly, having invested in IMH in the past and the preferreds in the very recent past.
IMO huckster is not looking for opinions. He's looking for confirmation that he is right. Anything less is unacceptable. Facts that he doesn't like are not facts. Whether he makes money or not on IMH, only time will tell. In the meantime, he just needs reassurance which is not forthcoming.
There is no "clear and present danger" in holding IMH preferred paper at the present time. The issues are mostly add-ons to shelf sales commissions to pacifiy greedy brokers who handled them. JT can't double-cross them or he may never find anyone to do anymore underwriting. The big boys in the backroom smoking cigars at their gin rummy game won't stand for being stood up.
blueox, You're probably right about the no "clear and present danger". Strange as it may sound, I've exitted all IMH related holdings (sold my common some time ago at $17 for a very nice gain--obviously would have been much better at $27) as much because I'm disgusted with Management's greediness and half-truths, as for my own economic reasons. My exit won't shake up any markets and I"m not interested in any lawsuits, but I just feel better not being invested with this management team right now. Might change. Who knows?
Curious! Why did you sell the Preferreds? I think IMH would have to actually go "belly up" before the pfds would not be paid. And even then, owners should get a piece of what's left. I own the pfds and so I may be biased>
Like I said, I lost very little on the sale and just don't want to be invested with this management team at this time. Not a totally rational decision I admit.
But you never know, the recent price decline in the preferreds may lure me back in. I'm retired and pretty much an income investor. And, since I sold at 22.30 I could get back in now at better prices than what I sold for.
"Curious! Why did you sell the Preferreds? I think IMH would have to actually go "belly up" before the pfds would not be paid. And even then, owners should get a piece of what's left. I own the pfds and so I may be biased>"
Someone posted the example of ford and g.m. earlier. Look at the discount to call price for those issues. It becomes more a matter of confidence than whether or not the company goes BK. IMH preferreds could easily drop to half of their call price and have the dividend suspended (not saying that is expected, just possible.) I don't know about you, but if that happened to the shares many who were long would get nervous enough to take the loss and get out. And depending on the eventual outcome, they could end up being the smart ones in that scenario.