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Western Asset Mortgage Capital Corporation Message Board

ehcowden 15 posts  |  Last Activity: Mar 13, 2014 12:27 PM Member since: Feb 13, 2009
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  • Reply to

    I just don't understand...

    by twomovehigher Mar 11, 2014 8:17 PM
    ehcowden ehcowden Mar 13, 2014 12:27 PM Flag

    They only extended the current which they had the authority to do. There seems to be confusion with the Rights offering and the release of shares and then the Extension of the offering in process....it is one event with a few options: Rights or No Rights Guaranteed price if Rights are purchased no guarantee if rights are not purchased: Over-subscription to the offering: Offering increased to meet greater demand than originally estimated. ALL ONE EVENT WITH SOME TWISTS AND TURNS BUT NOTHING OUT OF THE ORDINARY. RESULT COMPANY EXCEEDED ORIGINAL A MARKET WAS MADE AND DEMAND WAS ACCOMMODATED TO MEET SUPPLY THOSE WHO PURCHASED RIGHTS WERE DISAPPOINTED BECAUSE PRICE SET BY MARKET FORCES CAUSED "RIGHTS" TO BE UNNECESSARY It,s like playing Black Jack with or without insurance, this time, the insurance (RIGHTS) was not necessary.

    Sentiment: Hold

  • Reply to

    I just don't understand...

    by twomovehigher Mar 11, 2014 8:17 PM
    ehcowden ehcowden Mar 13, 2014 12:09 PM Flag

    You are describing the latest as though it was PLURAL, NOT SO! There was ONE secondary offering with RIGHTS offered to guarantee a price of $17 to those who purchased them...Had the price escalated ,the $17.00 holders would have been delighted, that didn't happen. If you want to see another similar situation in the beginning process, take a look at HQH. There was no first or second offering..there was ONE offering . Rights were offered to current holders. This ONE offering was extended because the company could see from the over subscription that there was more demand than supply so they extended the ONE offering and did not create a second offering as some believe. In order to actually perform a Second offering, they would have to file again with the SEC. Everything relative to this offering is contained in the original filings. Unfortunately sometimes investors don't read or fully understand what they are entering in to.

    Sentiment: Hold

  • Reply to

    I just don't understand...

    by twomovehigher Mar 11, 2014 8:17 PM
    ehcowden ehcowden Mar 13, 2014 10:30 AM Flag

    It will have to have a serious setback to get back into the $15s ..but you could get lucky! best of luck Dr.ehcowden

    Sentiment: Hold

  • Reply to

    I just don't understand...

    by twomovehigher Mar 11, 2014 8:17 PM
    ehcowden ehcowden Mar 13, 2014 10:28 AM Flag

    NO The shareholders were not, in my opinion, taken for a ride. I have been through at least 50 offerings and this one is somewhat different only in the fact that a .10 cent incentive was voted prior to the actual share release date and that the price didn't really fluctuate enough to make the rights very valuable. I don't very often purchase rights and since this CEF does not have options available, the opportunity to have a set price available may have been viewed as a positive by conservative holders...I did not purchase rights for my account but did for my wife even though I suggested not to purchase them and after 50 years of marriage, I will forgo the opportunity to say "I told you so". What these offerings do create is a short term time frame for the company to attract new funds from present and new clients and a bit of a short term Value Trap....Most investors don,t want to take the loss, even after the dividend application, in order to re-invest in other opportunities. There is another company symbol HQH that announced in the last week that will be making a secondary offer in the near future....you might want to OBSERVE how they approach the offering and compare it to the way OXLC did and ,I think you will conclude that tis offering was straight forward. Best of luck to you..Dr.ehcowden

    Sentiment: Hold

  • Reply to

    Scottrade fee

    by td67gto Feb 21, 2014 4:54 AM
    ehcowden ehcowden Mar 13, 2014 9:52 AM Flag

    I don,t think I was charged by TDAmeritrade.

  • Reply to

    I just don't understand...

    by twomovehigher Mar 11, 2014 8:17 PM
    ehcowden ehcowden Mar 12, 2014 4:15 PM Flag

    I think they already have investment opportunities and that they will be able to deploy fairly soon. Just saw another Rights Offering in the works: HQH, a health care closed end fund has announced similar offering in the works. They said that they wanted to expand without having to dispose of current earning assets....sounds similar to what we just experienced with oxlc....I'm going to look into further ...at a quick glance it may offer another opportunity. best of luck ecowden

  • Reply to

    Rights versus Secondary Offering

    by panther8python Mar 12, 2014 12:29 PM
    ehcowden ehcowden Mar 12, 2014 2:08 PM Flag

    Where is there a secondary offering???? There was an opportunity to purchase Rights at $17. this is intended to attract NEW capital....There was ONE offering!!!!! The Price (rights offering @$17.00 ) would be ,most likely, seen as a discount to someone who was not an owner at a lower price. This is usually how offerings are made...they did extend the original scope of the offering because of OVER SUBSCRIPTION but there was no secondary offering just an extension of the current offering. I think some are confusing the $17 Rights option....it is usually priced at a discount to the then current price so that it will attract NEW capital from current holders who own it at a price higher than the offered price provided with THE RIGHTS. Ie. the rights price of $17 was of no interest to me because my cost was approximately $14.50...but I did want to buy more but not at $17. So I did not subscribe to the Rights but instead waited for the release of new shares and bought at $16.12. Had I owned the shares at $17.60 and wanted to buy more at a guaranteed price, I may have bought one half of the new shares with Rights and risked buying the other half based on the price the market dictated which is usually lower than the price guaranteed by RIGHTS. ((THE DISCOUNT USUALLY RUNS BETWEEN 4 - 6 %. As a general I don,t buy rights because the market usually dictates a price closer to NAV...also the kicker to sweeten the purchase is the timing of the X date 3/13 to quickly follow offering date...you can look at it as Price minus value of almost immediate dividend which is $0.70 or 4.1%..with Rights Less in this case because it was possible to buy at a lower price. Sorry for the long explanation just intended to clarify..best of luck...Dr.ehcowden

    Sentiment: Strong Buy

  • Reply to

    I just don't understand...

    by twomovehigher Mar 11, 2014 8:17 PM
    ehcowden ehcowden Mar 12, 2014 10:28 AM Flag

    You did the right thing in increasing your position at a discount...by the way I also purchased more yesterday and today. By not participating in the rights offering, you and I both were able to buy at better price than the rights offering price of $17.00. The rights offering price of $17.00 was set buy the board of directors with advice from the underwriter at a discount of about 4% to 6% in order to attract NEW CAPITAL. You will read many comments on this board suggesting inappropriate behavior on the part of the company...absolutely NOT true. I was a CEO of a bank for more than 30 years and have participated in several stock offerings both as a seller and a buyer and I can say with very few exceptions that this appears to be a normal straight forward offering. The comments questioning a secondary offering miss the fact that it was a secondary offering and that the $17.00 was only determined by the company as a suggested amount for anyone who wanted to commit at a Sure price...the actual price was ultimately set by the market. Had the offering price surged to, lets say $18.00, at opening those who had purchased rights would have been able buy at the price of $17.00 and been "in the money" immediately. So it appears that we both benefited from waiting for the market price. Hope this was of help to you. Regards Dr. ehcowden

    Sentiment: Buy

  • Reply to

    New To This Board

    by ehcowden Jan 30, 2014 11:50 AM
    ehcowden ehcowden Jan 31, 2014 3:42 PM Flag

    Thank you for information. EHC

  • Reply to

    New To This Board

    by ehcowden Jan 30, 2014 11:50 AM
    ehcowden ehcowden Jan 31, 2014 3:41 PM Flag

    Thank you for the information.

  • ehcowden by ehcowden Jan 30, 2014 11:50 AM Flag

    I have owned 3000 shares of NDRO since Dec 2013 and would appreciate any helpful information from present or past holders. I carefully reviewed SEC filings, financials and , what appears to be, a profitable company with good dividends...I also own the same amount of ROY for about the same time period. Both we at low levels when I bought so maybe I got lucky....any helpful comments will be appreciated...thanks EHC

    Sentiment: Hold

  • Reply to

    What is there not to like about HQH

    by malibu9255 Nov 23, 2013 11:30 AM
    ehcowden ehcowden Jan 27, 2014 1:02 PM Flag

    This one has become a basket case, the last week has been terrible and it appears that there is no end in sight....I'm glad I sold before the catastrophic performance and I won't revisit this one again.

    Sentiment: Strong Sell

  • ehcowden by ehcowden Jan 24, 2014 2:30 PM Flag

    When you have to try and time a re-entry to capture dividend and appreciation and not lose more money

    Sentiment: Hold

  • Reply to

    A company

    by bladerobo Nov 14, 2013 8:06 PM
    ehcowden ehcowden Jan 24, 2014 2:25 PM Flag

    YES!!!! And it's a U.S. company not in an Emerging(3rd world) country!!!

    Sentiment: Hold

  • Remember Warren Buffet,s admonition "when others panic and sell, its time to take opportunity to Buy. I think that if you have sold today (particularly U.S. based energy holdings) you will look back at today with regret.... Very few have ever made money in a panic...unless you bought after others panicked...it has worked for me for more than 50 years...best to all. EHC

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