Would wait for a little while. Stock is topped out and is starting to drop on the chart. Would think somewhere in the mid 30's or so would be a good area to buy. They will be hurt by rising interest rates as they were last year. GL
The market is in correction mode right now and this is helping to drop the stock price. I also think that this secondary came to some unexpectedly and maybe they are afraid to buy right now. Also with the stock having traded for so long above book I think that the price is coming more in line with the other MREITs, though it still is over priced compared to the others. As for how much the dividend will be, I do think that most people are not able to calculate approx. how much it will be other than some of those on SA. I personally am waiting to see if it breaks down to around in the $13 range before buying again. I am glad I sold in Dec.
Just wondering what you think the catalysts are that drive this to 15? The chart looks like it will go lower first before it goes higher. I am long BWP from much higher.
The real question right now is where is book value? If it was over $15 before the stock issuance then they issued shares below book. But if you subtract the divi of 67cents from the $15.19 you get a book of $14.52 which makes the share issuance accretive to book provided they have somewhere to place the money. Also if they did not buy the investment before today then they are looking at buying a lower coupon debt that will lose value when rates begin to rise again. I still think that the economy is too weak for much higher rates but that is just me. The problem is that eventually rates will rise and WMC has not done a good job protecting book value up to now. A high dividend with decreasing book is a losers game.
Maybe because it is trading way over book value. I would not be a buyer till it falls below book like all the rest of the MREITs.
The technology was not available till just the last few years for oil and gas recovery. Reagan's policies brought down Russia without a shot fired. Obama's policies have empowered Russia to become more aggressive, possible third world war coming because of him. The only way to defeat a bully is to be stronger than them, weakness empowers a bully.
OKLAHOMA CITY, March 4, Mar 04, 2014 (GLOBE NEWSWIRE via COMTEX) -- PostRock Energy Corporation PSTR +0.78% today announced that the trial in Delaware of its suit against Constellation Energy Partners, LLC and Sanchez Energy Partners I, LP, et al. had been postponed indefinitely based on an anticipated settlement. While nothing has yet been finalized, the proposed settlement contemplates PostRock recovering a target of $21.6 million via the sale of all of its A Units to CEP and Sanchez followed by the orderly disposition of its B Units in a combination of a sale or sales to Sanchez and various block or other market transactions in the course of 2014. Full details of the settlement will be disclosed promptly as soon as it is finalized.
The settlement as currently proposed would eliminate all disputes between the parties and position PostRock to redeploy its capital into oil-focused development projects primarily in central Oklahoma. It will also free CEP and Sanchez to develop and implement a growth strategy at CEP. While there can be no assurance of success, it is hoped that the settlement will be finalized before month end.
If it goes to $20 I will buy more. 11% with little risk is better than most investments. I've been looking for a replacement for my MREIT's.
And the reason for this stock dropping below $30? When this was over $50 I would have agreed with you that it was way over priced. But here it is a good buy for a well run company. I would not be shorting this here. If you shorted from in the 50's you may have a little more time before you start losing, but if you are starting now you will lose.
Sentiment: Strong Buy
I've owned it since '08. Its has been a good investment. They made it through the collapse and seem to be doing even better. They bought their debt back for pennies on the dollar as well as other things. They say they have several dollars worth of gains that currently does not show on their book. At least that is what I think I remember.
First let me say I own a lot of MREIT's including AGNC. But keeping interest rates low for too long will distort risks and misprice investments that could lead to another market melt down when the market thinks rates are too low. This would be very bad for not only the MREIT sector but for the economy too. QE3 should never had been done and is distorting mortgage markets and this increases risk. Interest rates need to begin to float so the risk of a sharp correction like we saw in the last 8 months does not happen again, and you see what happened to the MREIT's in this period of time.
Last year they announced on 9-14-12 so I would assume that their announcement will be some time next week. I do not think that the taper is all that bad as this will start to take away the fed's meddling in the housing market. We are already seeing housing sales dropping due to higher rates. To me this means that the rates are already to high and if the market was working correctly rates would come back down. QE3 did nothing to help the housing market but did hurt those who invest in MREIT's. Good Luck.