Bought a bunch of AGNC cheap on Monday 6/24, held until the X-dividend date of Wednesday 6/26 and sold it all. This gets me the $1.05 dividend. Took proceeds and bought NLY on 6/26, held until the X-dividend date of Thursday 6/27 and sold it all. This gets me the $.40 dividend. Took proceeds and bought AGNCP (the a series preferred) on 6/27, will hold until the X-dividend date of Monday 7/01 and will sell it eventually. This gets me the $.50 dividend. What a week.
Sentiment: Strong Buy
I should have said who the management is, for those of you who don't keep up.
The Securities and Exchange Commission brought civil fraud charges on Friday against former Fannie Mae CEO Daniel Mudd, former Freddie Mac CEO Richard Syron and four other one-time high-level executives at the companies. Regulators say the executives made it appear that their companies had far less exposure to riskier mortgages in their loan portfolios than in fact existed.
Freddie Mac and Fannie Mae have been propped up by $169 billion in federal aid (Yea!)
If the SEC sues and wins for wardrobe malfunction statements of the CEOs, etc., it is obvious that the money they are forced to pay will come to us. Golly, I can't wait for my next billion.
The table below (best I can do here) shows all of the declaration dates for CIM. They average a week before the X-date, which is a month minus 2 days before the payable date. Figure it out for yourself when the next announcement (declaration) will be!
Payable Amount//$ Share//Ex-Date //Record date// Declaration date
01/27/2011 $0.17 12/29/2010 12/31/2010 12/21/2010
10/28/2010 $0.18 09/30/2010 10/04/2010 09/22/2010
07/29/2010 $0.17 06/17/2010 06/21/2010 06/11/2010
04/30/2010 $0.17 03/25/2010 03/29/2010 03/19/2010
01/29/2010 $0.17 12/29/2009 12/31/2009 12/23/2009
10/30/2009 $0.12 09/29/2009 10/01/2009 09/22/2009
07/31/2009 $0.08 05/28/2009 06/01/2009 05/22/2009
04/29/2009 $0.06 04/02/2009 04/06/2009 03/24/2009
01/29/2009 $0.04 12/26/2008 12/30/2008 12/22/2008
10/31/2008 $0.16 09/16/2008 09/18/2008 09/10/2008
07/31/2008 $0.16 06/10/2008 06/12/2008 06/03/2008
04/30/2008 $0.26 03/27/2008 03/31/2008 03/20/2008
Sold 30k CIM at 4.22 yesterday 1/27. The news and price rise is too good to last. Perhaps the secondary will drive it below 4 again and I can come back before the next X-date. GL all.
TD Ameritrade credited my account on the 27th at 0230 (a.m.) with the full divvy. I am very pleased. (30,000 shares is a nice piece of change)
The only clear event that accompanied the tank of CIM today was the after-closing announcement of divvys for NLY, 4 cents short of the last two quarters and lowest for the year.
It ticks me off that the insiders tell all their institutional buddies 6 hours before the announcement. Why don't they tell me, just once?
Trying to guess which way it will go tomorrow. The problem is that we just hit 52 week highs twice, seeming to imply big earnings are already reflected in the price. If so, nowhere to go but down. If not, I better get in today at 4.32, but that is really pricey! Opinions?
200% CIM (dbld up with margin for divvy). 22000 at 4.04 for sale now at 4.08, and then into something else until Dec. for next divvy. I'm only 68 so diverse is not my style.
So here you are, with a paper loss of over 15 cents a share, and a future divvy of .18 coming next month. If you were one of the insiders & institutions that collectively hold over 78% of CIM you would be fired on the spot. Us 22% holders can feed the big boys by quietly sitting on our shares until the next divvy, or we can reset the game by selling it all, waiting and buying below 3.85, selling at 4.15 next divvy time, and beating the divvy. Those insiders are not going to sit on 3 million shares each for another 90 days, they have bigger fish to fry. This eases the price down, and makes it attractive to come back in at a reasonable price. But if you are lazy, and sit on it for another 90 days, thank you very much.
I studied collage in college but just because there were all girls in the class, gluing all sorts of stupid pictures together. But, what that has to do with this stock, I can't imagine.
Not true! Not even nearly true.
The 90% is based on the final year end result, not simply the unaudited second quarter statement. They must therefore ask the three witches to gaze into the last quarter's cauldron, and decide what the final number will be. Happily, the witches are very well paid, and might even be close. If they predict that the forest will come to the castle, this time could be .14 to .18, so buckle up.
triple should have two pee's. English is silly sometimes. Like, "we work hard so you don't have to" (scrubbing bubbles) should be "we work hardly, so..." but in English, that is a contrary statement.
And, I like the referenced post by fish. For information on my Puts, see the relevent posting by me elsewhere.
The discussion under "time to Exit" and "nuts" is worthwhile for all to digest. Particularly good is the Fishsticks 9/21 10:57, but many have gems for your edification. Highly recommended.
OBTW, I trippled my $4 Oct. Puts today at 0.15
CIM has screwed the pooch twice, by issuing more stock and forcing the PPS lower. If you were sitting on the stock between dividends you had more than a 2 month chance of getting ripped off. My game plan has been, and will be, to buy at 3.9-4.06 before the announcement, hold until after the X-date, and then if the price comes above my buy-in, I get out. If Hell freezes and I get a 15 cent gain before the X, I sell. Taxes are much less on gain than on divvys. Bonus: if a 5 cent cycle appears, I trade for a gain many times between the X's. For $10 flat rate per trade you can make $500 before lunch many days.
Conversely, if you sit on the stock, you have everything to lose, nothing to gain. This baby is not going to suddenly appreciate to $10, no matter what. The unexpected downside is too great to expose your nest egg to.
GLA, Harley the Brave