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Chimera Investment Corporation Message Board

  • roderickb99 roderickb99 Feb 23, 2010 7:55 PM Flag

    MLPFS Summary II

    Price objective basis & risk
    Chimera Investment Corporation (CIM)
    Our price objective of $4.50 is based a dividend yield of 12.0% to our '10 estimate of $0.54 and implies book value multiple of 1.55x Q2'09 BV of $2.90 per share.
    Our dividend yield requirement is at the low-end of the 12%-14% range that we think persists in the market currently for comparable mortgage REITs. We think investors will continue to apply a modest valuation premium to CIM as its
    earnings momentum and potential BV growth argue for a stronger relative value to alternatives in the market place. We think CIM could benefit from some
    valuation convergence with other credit/yield investment vehicles, which remain at a relative premium in the market currently, suggesting further upside in CIM shares.

15.40+0.10(+0.65%)Oct 21 4:00 PMEDT