I don't understand this dividend of stock thing. So we should get worth of $2.35-0.80=$1.55 stocks. How to do they price the stock to get the number of shares received? Where do those shares come from? Does it mean a dilution? How does it affect book value?
Hi, Gracie, I don't blame you for being wrong with those two calls, and I agree that today's taper news is actually good for mREITs.
I remember that WMC had a significant change of TBA positions from short of $500MM to $390MM long at the end of Q3. That's going to hurt them with the recent rise of interest rate. What's your thoughts? thanks.
Sure, I know. As long as Fed keeps the short term rates low (they actually said they are going to keep it low for longer), I wish they would have taperred more.
Yes, that's a good relative performance, probably due to the large dividend putting a floor.
However, your "no taper" prediction was wrong. Fed taper by $10BB, and equally into Treasury and MBS. Hadn't WMC management always been predicting that Fed will taper Treasury before MBS?
I think your electronic order from TD probably was not really entered into the trading desk. I remember when I called Scottrade, they have to email their trading desk to get a bid quote for me and it was something like 2c. So it might help to call your broker and check whats going on than complaining to SEC.
Well, it hard to say it is crooked trading. There is no market maker for DYNP any more. I can't even see the bid/ask from Scottrade and cannot place an internet trade order. I have to call them and ask somebody there to manually put in a order for me. Unfortunately under such market condition, you probably just get what you get.
I have a SELL order of 10K at 0.04 (with ALL or None qualifier) that has not been filled since the beginning of Dec. Yesterday I called my broker (Scrottrade) and lower it to 10K at 0.03. The order went through this morning, but at the price of 0.04, not the 0.03 I asked for.
Have to take some tax loss here to offset my gains. Still hold the majority of my shares and hope for a miracle next year.
And we are up a whopping 25%!
Kidding aside, has anybody been able to enter a buy/sell order? I tried with Scottrade but it always complains that there is no bid/ask.
Although 0.24 is a good number but half of that come from gains on sales of property, not quite healthy.
Thanks for your commment, Gracie.
Although these trades look bad on those REITs (e.g. AGNC), I am still wondering how much of them come as a "forced error" vs. "unforced error". AGNC says that they typically operate in leverage ratio between 6 and 11 times while WMC does not give such a range number and always says they have plenty of repo capacity. Also, AGNC is much bigger than WMC, if it blow up, it will be a disaster for its REPO counter parties. Is it possible that AGNC has to do this to cap their leverage ratio due to their size?
Ray, my understanding of the big diff between the taxable vs GAAP income is that they are not realizing the paper loss from those swaps/swaptions. if interest rate stay flat or even come down later, they will eventually have to realize it and reduce their taxable income significantly. So this is basically a delay of the pain, right? Of cause, same applies to WMC if interest rate goes up.