AI (Arlington Investment Management), a small mreit going ex div on 3/27 87.5 cents is off close to 5% on a stock offering. Offering price = 27.40. Any purchase price under 27.10 = bargain, imo.....quick flip or high yield.
I would not buy this before ex div in a taxable account, but just bought 2,000 shares in an IRA. My intention = dividend plus a flip. After I read 10-K and 10-Q I may decide to hold for yield.
Not me because I'd rather put more money in a company I know well.....NRF, SUI, SCCO...before I put more money into a company I am just starting to know. I bought the offering discount and the dividend on gut experience with other offering buys. Before I completely digest the 10-K and other filings, 2,000 shares is enough.
Thanks for the tip. Just got back from my Tuesday morning bike ride for pancakes and checked my stocks and saw your OT tip and managed to grab a quick 1000 at 26.92. Looks good for a flip or a hold.
When you read the 10Q, pay particular attention to the portion of AI's BV attributable to their tax loss carry forward. I believe it was about $9.90, roughly a third. Your are probably aware of this but for the benefit of others, some of AI's selling points are:
1. While they operate like a mREIT, they are a C corporation and therefore their dividends are Qualified, a significant tax advantage.
2. Their "core" earnings have been able to cover their dividends quite adequately. ($.97 mrq).
3. They have a large tax-loss carry forward that is in effect sheltering much if not all of their income tax.
4. They have a 13% plus yield (at current prices of $27.00) which again is Qualified dividends.
5. They are selling at a significant discount to book value, but I am not sure what this means because of so much of the BV consisting of the value placed on the tax loss carry-forward.
As always, wishing you the best