I purchased 1,000 shares of WMC on 3/14/13 (500 @ $22.47 & 500 @ $22.60). An small time analyst also downgraded it on 3/14/13. At this point, it appears that the stock has "shaken off" the questionable downgrade and closed Friday @ $22.74. The stock will go ex-dividend very shortly (date not yet disclosed). I am consdering purchasing another 1,000 shares, but have some concern about how thinly traded this mREIT is and the possibility of a bigger house analyst trying to get it to pull back prior to the yet undefined ex-date. Thank you in advance to anyone with a view on the above.
Picked up 100 contracts a couple weeks ago based on a strong 4th quarter. Wish I had bought more, up very nicely since then. That analyst actually gave a nice buying oppty. I think there's a good chance of them increasing the div to .95 maybe even $1. That should get it on more investors radar and maybe move it to the $25 range. WMC is like an infant MTGE waiting for it's pps to develop.
Sentiment: Strong Buy
FWIW, here's my two cents. The divvy announcement should come out sometime next week with an EX sometime the last week of March. Since they paid a .22 special divvy in addition to the regular .90 at the end of last Q they should announce at least .90 and maybe a little more. I bought a few dozen Apr 22.28 calls with a 22.95 BE. Because this is still a relatively new issue, I did not jump in with both feet. GLTU whatever you decide.
WMC is a relatively new stock, and probably will suffer a little from the lack of a track record. Having said that, I try to find a stock or two with high potential that hasn't been discovered by the masses yet. I put WMC in that category because I think it has not yet reached it's fair value. It is very much like MTGE: hybrid, paying $0.90, great 4th quarter earnings report, and even paid an additional $0.22 special dividend in 2012 which MTGE did not. MTGE sells for $26 which is where WMC should sell, if not higher, so it could go up $4 - $5 yet. I'm not worried about that little analyst; there are others who think WMC is already looking like a top pick. I tend to bet a little more than some: my 30,000 shares are already up over a dollar in a month. I think the divy stays at $0.90, although they made enough core earnings to boost it a little. GL.
Oh, if you want a stock that will develop a little slower, but doesn't need constant watching, check out NMM. I bought it before Cramer recommended dry shipping recently .... Cramer just recommended the wrong one. NMM pays 12.5%, and could go to $40 in three years if the world economy improves as supply of ships is now declining.