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Two Harbors Investment Corp. Message Board

  • tuckerleppa tuckerleppa Feb 15, 2013 2:14 AM Flag

    For those of you who are ignorant

    For those of you too lazy to listen to the 4th quarter earnings conference call or read the transcripts let me give you an update.
    "Let's take a moment to discuss the fourth-quarter dividend. As you may recall, this dividend included taxable income from the contribution of our single-family homes to Silver Bay, as well as from realized gains from our agency portfolio repositioning, which Bill will comment on later. The $0.55 dividend was also, we believe, important in terms of timing for our shareholders, given changes to tax policy in 2013. It should not be taken that this dividend level is representative of our ongoing earnings power."

    My guess is either a return to the $.40 dividend or down to the $.36 dividend.

    Another topic being heavily mentioned is the distribution of the SBY shares

    "Another important accomplishment in 2012 was the contribution of our portfolio of single-family homes to Silver Bay in exchange for 17.8 million shares of common stock concurrent with Silver Bay's IPO in December. Since the IPO, the shares have appreciated approximately 10%. These shares are subject to a 90-day lockup, which expires in mid-March. As we discussed previously, subject to the approval of our Board, it is our intention to distribute the Silver Bay shares to our shareholders by means of a special dividend at some point following the expiry of the 90-day lockup on those shares. We will continue to keep you advised if and when the Board should make such determination."

    So what they are saying stay posted they will announce at a later date what they are doing. LET ME REPEAT YOU HAVE NOT MISSED ANY DIVIDEND OF SBY AND ARE NOT ENTITLED TO SUCH IF YOU SELL YOUR SHARES. They will set a date of record just like any other dang dividend. If they were to distribute every single share they are holding of SBY then For each share of TWO you own you would likely receive .05957 shares of SBY. The math for this is 17.8 million shares of SBY owned by TWO, divided by the 298.81 shares of TWO outstanding. REMEMBER THEY HAVE NOT SAID HOW MUCH SBY THEY WILL DISTRIBUTE IT IF THEY WILL AT ALL. They said it is their intention to, with board approval. So you can't know this for sure.

    My sentiment is that the stock is over priced and that's why I sold my position on Tuesday. With the plan to reinvest later when the future dividend and the SBY dividend is more set in stone.

    Sentiment: Sell

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