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Chimera Investment Corporation Message Board

  • foreverwhiteroses foreverwhiteroses Jun 18, 2008 8:50 AM Flag

    Anyone Here?

    Have just begun monitoring CIM and have started a position.... It doesn't look like this is a very active board. Is anyone here??? I'm drawn to CIM as a contrarian play. What I like is the timing of the formation of this company - deep into the credit/real estate crisis, CIM is created to invest in what everyone is running from...There's going to be opportunity for those willing to dive into this muck and you've got to be willing to enter when no one can figure out why to do it just then.

    What brought me in was the 13-D filings from ValueAct Capital Management. They've been buying and adding to their investment....

    Any thoughts to share on CIM?

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    • Well alright now! IN for 10 days, down 10% plus... Way to go! It's so tough to know what to do in this market.... I bought almost hoping for it to go down more to be able to add to my position.... Now it's down and all I do is question my sanity for getting in in the first place.... Woke up this morning thinking it's extremely difficult to envision the upside catalyst for the market in general let alone real estate stocks....Hey, maybe CAPITULATION will be the catalyst....I sure am frozen.... feel like the proverbial deer in headlights...

    • If people don't buy a lot share for not thing. I think cim is bottom. It's value over $17 a share but it trade under $10 a share. If you watch cnbc couple day ago. I think good to buy on cim.

    • I suggest you take a look at the prospectus they filed. They reported they had margin calls last quarter, and this equity issue is to bolster the balance sheet. The `knife is still falling``. Note as well that the most recent amendment to the DB repo agreement substantially lessened their financial covenants. (DB is assisting in the underwriting of the equity issue...hmmm).

      The mortgage market has continued to deteriorate since the end of the quarter, and they are likely to report a large loss this q. Finally, note that the Bear Stearns charges laid this week are with respect to the exaggeration of the value of mortgage securities by these hedge funds. I am sure that the mgt is aware of this issue, and doesn`t want to be doing the perp walk in a couple of months. If they come clean on the real value of the paper they bought, then they will have lost a lot of money in their short life.

    • Well I'm short (I own puts). I'm thinking this thing will see $5 before it sees $15.

      Their problem is they need leverage to operate with a decent return and no one wants to lend on these assets. RE values are falling and defaults are on the rise. Yea I know its rated AAA but we now know ratings mean nothing on this stuff.

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