not this time guys... this is it. and i have and will stay with CHMI. good luck w/ your mtge... but mtge doesnt have enough msr for me.
10 yr slightly lower in yield so mreits followed. short lived noise. long term mreits set to be big losers in 2014 if the economy stays on course.
the same cannot be said for two and mtge. most of their capital is not in MSR like CHMI. the percentages are lower and they have much more agency mbs. CHmi book will improve on higher rates vs MTGe which will decline.
the pricing was fair and they had bought 2 pools of MSR with a right to the new mSRs if prepaid using freedom mortgage. so if the mortgagee refinances with freedom and was previously with freedom CHMI gets the new MSR for free. If you look over the terms you can see the deals made with the parent company are solid and fair.
but its not the same at all. CHMI's NAV goes UP as rates rise and down if rates fall thanks to the majority of their capital in MSR but somewhat hedged with agency mbs.
another side note on the market price... i am almost positive if i put in a limit order for another 25,000 shares at $18.50 that maybe 3 or 5k at most would fill and other folks would step up their bids and try to get ahead of my order. thats how it was before when i was loading shares. the price has been relatively stable trading between $17 and $19 for now. the q4 report should encourage new investment which i think may drive a higher stock price. the dividend i expect will be about 0.50 to 0.55... the last one was partial of 0.45.
i am 100% sure the IPO proceeds were approximately 19.733333, post investment the assets could have moved up or down in value. based on the current book value... id imagine we are approximately the 19.50 to $20.50 range for book. prepayment speeds are down quite a bit since even october 2013. i blame the stock price on regulatory fears for mortgage servicers like OCN and if you look at NRZ they pulled back some... so sector drama. but also, lack of liquidity can cause dislocations... analyst price targets range from $21 to $26.
between 18.05 and 18.10 almost 10,000 shares were traded. If you buy in 1000 share blocks or 500 share blocks u can easy fill. personally... i used 1000 share blocks for the most part. And when u have somewhat of a position.. if u want to get filled faster. u try to sell your own shares at say.. $18.10 when u own your last batch at 18.05... when u do that.. other people try to sell at $18.10 with you.. or try to get ahead of your order.. then u pull ur order really fast.. and hit the ask price u had in the computer. you'll fill.
maybe you should add to CHMI today. Good opportunity.. Rates going up thus NAV is up but the stock is down. $18.36ish right now. Maybe snap up some extra shares down here
why do that? they offered below book. DILUTION. Anyways.. if you were going to buy another mreit today.. you would want EARN. 0.74 earnings and 0.50 paid, 2.7% loss to book in Q4 vs MTGE's 4%. These guys are pretty savvy.