I still like it, have been in and out a few times, usually at a gain and then buy back lower. Am in it mainly for the dividend. which the last conf call seemed to indicate was secure short term, but also said that nothing is forever. Pretty noticeable chop today, which allowed me to buy back some I had sold, though even at these levels I remain concerned about premium to NAV.
Yes, the dividend, when finally declared, went up. That would also be a positive as to share price. The other thing that happened was the company announced that previous released numbers were incorrect, and it still has not filed its 2012 10-K form with the S.E.C., saying because of the errors and corrections it needs up to two weeks more to file its late 10-K. The bottom line numbers were apparently not affected by the error the company has discovered (it blames a third-party's software product), but "core earnings" were. And the new dividend, as I read it, is all but one cent of the previous quarter's downward-revised core earnings. In some cases, accounting irregularities can be a negative as to share price. Now, I am not a C.P.A. but there is the obvious question as to whether they took the dividend up to within a penny of core earnings to offset any whacks they might take in share price from the accounting mistakes. I'm not smart enough to prove that, but I wonder. And thus I wonder whether the share price will open up, down, or about the same, when trading begins today.
(I knew when I went to bed last night that the 10-K ,due April 1, still was not showing on the S.E.C. website, and I was pretty sure there was something going on. I pretty much concluded whatever it was somehow was related to the slow declaration of the dividend. Got up this morning and saw the announcement. Wow. Anybody can get hit by a third-party's foulup, but at least short-term I've lost a little respect. Now, give me 50 push-ups, WMC accountants.)
They ARE calling it "first quarter dividend," even if it doesn't go ex until April 2 or later. Messes up my quarterly books but I can live with it. Question becomes if they do this with the fourth-quarter divvy that "should" go ex- in December, and push it into January. I don't THINK they can do that one without triggering excise tax on the non-paid-out profits as a REIT, but I worry anyway because that would mess up my annual books and would be a lot worse than this March/April business.
See yesterday's thread: http://finance.yahoo.com/mbview/threadview/?&bn=a7569915-6bd6-3bc5-88b2-9e0e17e59555&tid=1364243502622-f5f0ebdc-b2de-4fd6-bf6b-459fe4516105&tls=la%2Cd%2C3%2C3
Answered his own phone, no voice mail, no secretary other than the switchboard operator I gave the extension number to.
I couched my question carefully that I wasn't trying to get any unannounced information, but I asked him to confirm that WMC still had the intent to issue quarterly dividends. He was very nice and genial, said "yes. . . we just haven't announced the first-quarter ex-dividend date yet."
He then volunteered a strong hint that the ANNOUNCEMENT would be this week, before the end of the month, and then told me that the ex-date normally follows by about a week. That tells me the ex- and record-dates, as well as the payable, may actually fall into the second quarter, though he definitely called this the "first quarter dividend." That will foul up my quarterly books a little, but as long as it is
(1) legal, and (2) all in the same year, I guess I can live with it. We ended the call by me asking if I should just check the press releases for the rest of the week and he said yes, or the company's web site.
If there is any problem or interruption of the divvy, he didn't betray it in our chat.