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Two Harbors Investment Corp. Message Board

  • tyhee2009 tyhee2009 Mar 28, 2013 12:04 PM Flag

    I don't understand the spin off, can someone help?

    I have a question, are we now owners of sby stock? I really am kind of new to trading a don't understand the spin off. I owned two for extra retirment income, I own only 1000 shares of it. So as i read it, it seems like we are getting shares of sby is that true?

    Sentiment: Buy

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    • lynn.a.grantham Apr 1, 2013 1:36 PM Flag

      Two Harbors is a hybrid Mortgage REIT in addition to investing in government backed mortgage securities and making cash off the spreads it also bought thousands of houses in certain demographic sweet spots at very low cost and put them up for rent.

      Two Harbors then created another company Silver Bay and traded off 3000+ houses to it in exchange of 17 Million + Shares in Silver Bay. Silver Bay was taken public and was trading around $20/share a couple of months ago.

      Now (last month) Two Harbors finally formally announced that it was going monetize those 17 Million + shares of Silver Bay and distribute the proceeds to share holders of Two Harbors in proportion to the number of share you have in Two Harbors. The declared the rate of exchange to be .049 shares of Silver Bay for every share of Two Harbors you own. (17 Million+ Shares of Silver Bay) / (300 Million+ Shares of Two Harbors) before the announcement of Two Harbors going to share additional shares of itself.

      So as previous posters have explained multiple the number of shares of Two Harbors you own times .049 to determine the number of shares of Silver Bay you will have ownership of.

      However, Two Harbors Management decided to take all of those distributed shares of Silver Bay that we own and let a third party manage the sell of. Then those dollars will be distributed to Two Harbors Share Holders.

      There is folks.

      • 2 Replies to lynn.a.grantham
      • lynn.a.grantham Apr 4, 2013 12:36 PM Flag

        I stand corrected. I scanned the press release too quickly the first time. People need to settle down today. Has anything fundamentally changed from a few months ago? No. In fact in the last Qtr. Conference call it sounded like TWO may soon begin to package and sell it's CDOs perhaps while teaming with Credit Suisse. They did just recently receive the license to processes and service mortgages. Or have totally misread or misunderstood everything again?

        Have any of the insiders dumped larges blocks of shares?

        Take a deep breath. The Federal Reserve has painted itself into a corner with the constant QE over the last few years especially the now $85 Billion a month of Mortgage Bonds. I don't think they would dare risk throwing cold water on the nascent Housing Recovery which is a huge Jobs engine and also makes Home owners feel better about themselves as Home prices rise and their Homes get above the water line of debt to price.

        The Fed has long ago let the genie out of the bottle. What the do eventually risk doing is loosing credibility with the rest of World as they are buying up about 60% of the of the U.S. debt that is being issued with nothing but Dollars created out of thin air with a few strokes on a keyboard.

        Eventually China and Britain and other Countries are going to get tired of first buying U.S. Debt then they will begin to start selling U.S. debt. Possibly in a year or two the U.S. Debt Bond Market is going to implode and that will be the next Bubble to Pop, then quickly in tandem the U.S. Corporate Junk Bond Market and finally the entire Bond Market. It will fall extremely fast when the damn breaks.

      • WRONG ON THE SALE OF SBY. YOU GET SHARES OF SBY and cash for partial shares

    • god i can't believe how many times this has been repeated on this board can't you people read?

      now i know why financial advisers suggest most people just put their money into SP500 index funds

      sorry for venting but this is getting ridiculous

    • Yes, for 1000 TWO shares you'll get 49 SBY shares. Enjoy!

    • Yes here is the press release

8.870.00(0.00%)Sep 27 4:01 PMEDT