unless a judge says otherwise the preferred are due $0 in dividends present past or future. But they do carry a redemption value and is a liability on the balance sheet. My guess is a favorable ruling (knock on wood) then an offer would be made for the remaining preferred shares.
I think because many of the mortgage reits that were created after the recession based allot of their business around distressed assets. Now that the market is rebounding the distressed market isn't as attractive as it once was. JMO
The thing about it all is the shorts are reacting in anticipation of the bottom falling out but. I can't see this going below 17....but I guess a retractment to 17 would be a decent payday too.
Forward guidance is horrible for the 3rd quarter. CEO already stated Q2 earnings are strong so a shorts only card is the company stating a serious downturn in originations for Q3
Thanks for the detailed reply. Ive been in this stock for 4 years I think its set to be my flag ship investment for at least the next 12 to 24 months. The housing market is just scratching the surface to its recovery.
I'm not sure if I lost it in translation but I don't think he mentioned the increased shareof profits from the cash call deal as compared to the first quarter.