The trading range will keep falling on each new offering, just like CIM. I would imagine that $7's are history here. I can't believe it even made it back to $7 after the previous SPO. Just wait for $6.25, buy it and pray you can collect a couple dividends and sell it at $6.70's before the next SPO.
People were saying the sevens were history after the last dividend cut.
SPOs that are accretive to earnings are a good thing. This isn't like a company that has to make an offering for operating capital or to cover debts. They wouldn't have offered unless they thought they could earn more from the income than it costs.
IMHO you are correct in your thinking. If they cant cover debt it would be reflected in the divy first
Historically, they have recoveded from each SPO. Over reactiion and misunderstanding of what an SPO is and causes panic selling. Divy cuts over the long run appears to hurt more. IMHO we are at a critical price point. IMHO if it holds here in the $6.50 range-were it has some support-we should see an eventual rebound to the back to the $7 level. If not, the next the support levlel lies in the $6 range.