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Chimera Investment Corporation Message Board

  • nickspinner Oct 3, 2011 12:14 PM Flag

    CIM headed for bankruptcy?

    Kind of looks like it based on the trend. Panic selling by a horde of morons has ruined this mREIT.


    I'm a major bagholder, have been taking an epic beating. Don't know what to do at this point.

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    • Bankruptcy is NOT defined as: "the share price reaches zero".

      Bankruptcy will usually (not always) cause the price to go to zero, but not the other way around.
      Separate cause and effect here.

      If you really do mean: "Panic selling by a horde of morons has ruined this mREIT."

      Then, the thing to do right now is one of:
      a) Hold, and get the dividends every quarter. They are NOT influenced by the share price at all. (only the yield percentage is influenced by this)
      b) Wait till it hits an eventual bottom and then buy as much as you can comfortably handle.
      c) Buy a little more (with the dividend money every quarter?) so as to average down your cost.
      d) maybe buy some call options instead - you need to have some idea of the recovery time-line in this case.

      What NOT to do - if you believe that statement above - is:
      a) Sell now, lock in your losses, and run away.

      If, on the other hand, you think that there may be some other reasons to the share price drop, and that they just might continue, then selling now might be the right thing to do.

      Either way, decide for yourself, based on available evidence what you think is going to happen to the stock.

      Be brave, not a sheep, and follow through on the appropriate course of action.

    • I plan to buy more friday. To dollar cost average down.

16.14-0.09(-0.55%)Sep 29 4:01 PMEDT