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Western Asset Mortgage Capital Corporation Message Board

  • daicheng0722 daicheng0722 Mar 6, 2013 9:37 AM Flag

    for those who are scared of spo

    check out NCT and NRF...
    That is how it works for reits

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    • NCT and NRF are not the same as WMC. WMC is more like NLY AGNC CYS AMTG. And if there is a secondary the stock price will drop over a dollar possibly wiping out any gain you might have been able to make. Many of the other companies have done SPO's and no one wants to get stuck, including me. If your are already in other mortgage REITS then you are trying to limit your downside. This company has a limited time in the market so a divi cut is also possible. Also the only MREIT that has had any good pricing power so far has been AGNC. Look how WMC traded today going to $22.38 only to drop back to $22.03, this does not give one confidence in this stock no matter how good it is. Just my opinion for what it is worth.

    • Your perception is off.
      Nobody who has been investing in WMC is scared of secondary offerings. The concern you perceive is the timing of their portfolios with a secondary.
      Most investors in this sector welcome secondaries, no fear.

      • 4 Replies to slegermark
      • Hey Slegermark,

        I disagree! I for one would hate a SPO if I were like Ray85 and just invested 14,000 shares right before a potential SPO. I am not saying they will have one until after EX but just saying....look at the last SPO at the end of Sept. I think you got out just before that, correct?

        Well it took over 5 months, until today to get back to the offer(22.20), but not the pre- SPO PPS. I don't want to sit on top of 14,000 shares waiting over another 5 months just to get back to the offer. Sure you collect the great dividend. So what? You end up at maybe BE over 1/2 a year.

        Don't get me wrong. I was one of the first pumpers of WMC after their IPO. It just disappointed on its non- acceptance in the mReit space compared to the initial growth of others such as AGNC and MTGE. I think it is still a great buy and hold if you have 5-10 years. I don't....;-)



      • I don't know who you are kidding. SPO's for PSEC have dropped the stock by over 9% and reit SPO's also hurt pretty good if enough shares are sold. I hate getting hit with an SPO, but love buying afterwards and I seek them out.

      • slegermark i welcome a SPO as a buying opportunity. Do the Hedge Fund BOTs control WMC like AGNC?

      • good reply

        Sentiment: Strong Buy

10.84-0.05(-0.46%)Sep 23 4:02 PMEDT