For those of you who enjoy these type of things, the voume for the last 15 minutes has been incredible. This is definitely a case of someone trying to keep the value of HTS up. There was a lot of selling as you would expect given the price run-up, but some keeps jumping in to buy up big blocks. While I am not always right, this looks, smells and feels like the birthing pains of an SPO. It might well be coming. The price is now $28.19. When it hit $28.30, teh battle began. They need to keep it as high as possible, as the last SPO was $28.50. This one will have to be something like $27.50 given the book value. Anyway, I could be wrong, but it is unusual activity and the volume is pretty high for this stock. Anyway, I am holding puts.
Nly will do theirs before Hts does theirs and that will be a way's ahead. Those puts were bought way to early my friend, but let's hope I'll win mine, which I'm already even with the 210 calls at .25, and then you get your offering after I sell my calls. Deal? :-)
Arsh, you never know, you just never know. You put forward your argument above for a price of $28.75 to $29.00, which means you are re-living the quarter before the last one in terms of where you think the value is.
Whether you are correct in terms of NLY first; HTS second doesn't really matter. However, I am now of the opinion that HTS is now trading a price $1.00 less than in prior quarters.
If we do get to $28.75/$29.00 for a secondary, subtract a dollar to get to $27.75 to $28.00. My puts are not bought too early then, but if you are right I breakeven. If I am right, then I make $1.00. Our argument is over valuation.
They are doing all they can to pump this stock up as I observed today, but tomorrow is another day. People are not going to be happy sitting over the weekend with long positions.
You also should know the short interestin the MREITs is sitting at a high level. See my post on AGNC. AGNC is at 9.00%. I can't remember HTS right now, but both HTS and NLY are 5% +/-.