Regret is when you have 167 shares, not 167,000 shares. Have a beer on me tonight. I only sold 7,000 shares recently, but still have 45,000. I'm practically a pauper next to you .... hey, you can buy the beer. :-)
Yes, I looked at that. It seems they expect a combined divy of $0.275 quarterly in 2014, and a combined share price of $13.50 - $15.00. Lots of variables on the share price. These numbers are essentially the result of simply splitting the companies ... no additional debt, SPO's, or new business included. They also think that there is a mountain of upside available in the form of higher P/E's associated with management companies especially. Count on keeping both companies.
Having revenues that are largely guaranteed does not guarantee that WMC will not go bankrupt. I'm not saying they will, but people should not think that way. Simple case: repo rates = mortgage rates = guaranteed bankruptcy. Now, that's not likely, but it points out the problem with MREIT's: there are flexible rates at both ends of the equation that need to be hedged. If the rates took 10 - 15 years to change, then they probably wouldn't need hedging. BUT, mortgage rates [and usually repo rates too] change quickly while the portfolio is long duration .... ergo, the problem. You have to smear a lot of grease [hedges] on those numbers to squeeze out a profit sometimes, and you have to do it correctly. So, while bankruptcy is unlikely - although it has already occurred in the MREIT business, reduced profits and reduced NAV can get into a death spiral that can be very costly to shareholders. Look what has happened this year already, and there is theoretically no bottom.
This is different than BDC's that typically don't have much rate risk; they have credit risk instead. They don't have to hedge anything; they just have to make a good judgment about who they will loan to. Totally different, but not necessarily easier. Just showing the contrast.
Well, I got caught with my pants down this year. I was all set for a big score in WMC when The Fed started to talk about tapering last May. I wasn't expecting them to say those things, and you know what happened. Now, someone else is driving the Jaguar that I wanted. Oh well, if I take last year's MREIT profits, and substract this year's MREIT losses, I'm still up $150K so it's Ok. But this is my confessional. I have sold out of WMC, and will try hard to stay away. I am retired, and don't need this much aggravation. Be careful, it's dangerous out there. GLTA
Agree completely, Dar. Given the strength of this company, it probably should sell around $11 - $12. Will it? Well, we have more chance now with the economy picking up. I have been lucky with NRF; started buying in the $7's .... long 50,000 shares as a core position.
How quick was that search? Here is a direct quote from the FedEx site:
"Born in 1944 in Marks, Miss., Smith attended Yale University, where he earned a B.A. in 1966. Smith served as an officer in the U.S. Marine Corps from 1966-1970."
Not too accurate there, Young Fella.
I knew you were wrong about Fred Smith, so I double checked, and found what I remembered: He attended Yale University [well, not Harvard] where he wrote a paper on a concept that would become FedEx. He matriculated from Yale in 1966.
All of your talk about more shares, while worthy of noting, badly misrepresents the situation as they have successfully invested the proceeds so far. Their divies are not a ROC, and they continue to have a size-able UTI.
The PSEC business and the AGNC business could not be more different. The former is a credit risk business [currently recommended by many analysts], and the latter is a rate risk business [currently not recommended by analysts]. They should not even appear in the same sentence.
I am holding PSEC, FSC and WMC.
Not that much new was said .... mostly a reiteration of their business opportunities. They did mention that a major transaction should occur in New York before the end of the year, but couldn't be more specific right now.
The prez did comment that he believes that NRF stock is substantially under-valued for unknown reasons. If you listen to the archive, that comment was towards the end of the presentation ... maybe the last 5 minutes.
While it's true that PSEC has a lot of floating rate paper as assets, the rates float with LIBOR, not our Treasury rates, and LIBOR has not been nearly as volatile.
Did you near the one from today? The Repubs are spreading the news that Obama is bailing on Catholics by closing the Vatican embassy. Supposedly, this is to get back at the Catholics for trying to kill ACA [because it funds abortion].
The truth: The Embassy is not being closed, it is being moved to a new building [actually closer to St. Peter's Basilica]. This move has been in the works since George W.
In other news: A Repub was knocked out today when he was hit on the head by an oncoming fact. He was heard to say, "What was that?"
Yeah, I was just reading on the AGNC board that some bigger players might be taking tax losses now so they can buy back before the end of the year, avoiding characterization as a wash sale. Probably a pretty good thought.
As I understand it, you believe it's due to market manipulation. Right? Maybe so, I was just pointing out the only thing that happened today that I could think of that might have an impact on MREIT's. But, frankly, I do not know. I found it to be a strange day with MBS prices up a tick and MREIT PPS getting trashed.
Not very clear, I guess.
I was trying to agree with the OP, and to point out that everyone has an agenda in this business. Typically that's to move people out of bonds, and into stocks, as that's where professionals make their money.
Yes. The vast majority of people that are on TV or wrote about the market make their money by buying and selling stocks. People tend to hold bonds, so they like to move people out of bonds and into stocks, and then churn, churn, churn.