So two of the three days in the dividend run are over and I have had more fun watching paint dry. The only thing that seems to make sense is that the market does not want to pay a premium to book value for mreits right now. Any other theories?
I just don't get it either, having a position in EFC, it has risen nicely even AFTER the ex-div date and this stock is trading at 90% to BV. Here is a well managed company (not very exciting but steady). Was there a dividend cut? No. EPS seem consistent and NYMT imho has a great position in MFH units. On Friday evening we saw an after hours trading pop of 2.6% and by Monday - gone. Look at CIM which imho is a real POS; cannot even produce financial statements but they release divie info and today it is up.
My only theory is that this stock with it's small market cap isn't well known in the mREIT world or maybe day trading may have some impact. Anyway, I wonder how bad this stock is going to DROP after ex-div date??? Good luck with your position(s), while I remain long on NYMT my current position is HOLD. Anybody who buys right now is making a foolish gamble imho.
the ex-date and the days going forward will be interesting. as strangely quiet as NYMT has been leading up to the ex (even with very high volume), maybe we'll be surprised at how quickly it fills post ex-date.... but i'm a bit nervous. one thing i dont like about NYMT is only 13% of its shares are institutionally owned.
The market seems to be more interested in speculative stocks like financials and materials. Consistent earners like NYMT are boring right now. Hold it is. I guess we are going to see what life is like after EX.
The great thing abut these mreits is you know there is a substantial dividend coming in another 3 months. It could be a rough ride but that may be true of many other stocks that don't give you the big payout.