They have shown excellent sales growth in some sectors, importantly in WIFI. This is not "back up the truck" time but it is nibble time. It is still very much a speculation. They are still in the process of building growth; they have not proven themselves yet but there is real potential and the stock will go much much higher if they succeed. Did not make me say"hallelulia!" but it did not make me puke either!
It seems the expected rev miss in 1Q2014 is so small it may not even miss. If it does dip today I think a good opportunity to nibble.
If you do find it please post info how to find it. I believe it could get to $20. but it will take time; it must continue to have a big div and have earnings to justify it. If they can do that during tapering it will be a huge plus.
Thanks; lot of good info there. Things are looking better for TNK but only a little better due to ban and more domestic production. We really must depend on world recovery; I don't expect the ban will be lifted any time soon. But I do expect world recovery following our recovery here; so good news on US recovery will lead to good news for TNK, with a delay. This may be a buying opportunity.
You should perhaps do more research before jumping in so big; that is relative of course. It may go lower before it goes higher, so a nibble now and perhaps another later is prudent; but, please! Do more dd before you buy more. I merely gave you an oversimplification of what an Mreit does. Make sure you are diversified into other sectors. Maybe put most of your money into a SP fund and play with some as you learn. May fortune smile on this investment since I am in it also!
If you look, you should be able to find this info on yahoo. But, to figure out what the yield, going forward, will be is quite difficult. They were paying about .80/.90 perqtr, but that was much less than the required 90% of taxable earnings. So, they recently had to pay 2.35 at the end of 2013. This suggests that they could have been paying about 1.20, or more per qtr. That means a legitimate yield of about $5/qtr or 33% at current prices. So, why is the price so low? Well; all reits have been hammered down by rising rates and resulting fall of BV. What these MTG reits do is complicated. While rates are rising the underlying value of their assets falls; but it stil earns as it gets slowly paid off, and that new money coming in is reinvested at these higher rates. If they manage things smartly they will do well in the long term; but it is easy to "screw up" in this unpredictable environment. So, the market has readjusted the price for this risk. I bought more because I believe they are smart managers. We shall see?
What were your trading fees from IB, for the purchase of 4K shares? The fact that WMC was required to pay the 2.35 tells me their taxable income was much larger than the .80 dividend. But it may take a few decent quarters to recover back to your purchase price. Buying more shares now at reduced price will help you recover sooner.
This is all short term discussion. Of course a loss in the short term. But the big div was necessary because WMC was earning much more than the .80/.90 divvy it was paying out; even while rates were rising and BV was falling. IMO, WMC will continue to be a good earner/divvy payer and eventually appreciate. Meanwhile, you get over 20% to wait. Also: hindsight is always 20/20. Good long term buy, but it may dip lower before it goes back up.