REIT Analyst
REITs, research analyst, bonds, long/short equity

Chimera's Fair Value: 35% Upside Potential On A High Dividend mREIT

Chimera Investment Corporation (NYSE:CIM) is worth looking into essentially for two reasons: (1) it is a hybrid mortgage REIT buying agency and non-agency bonds, which means that not many people really understand what it does, and (2) it has not published its accounts for a year, leaving many potential investors in the dark. With such opaqueness, CIM should be ripe for significant potential mispricing.

In addition, CIM's parent company, Annaly (NYSE:NLY), has recently decided to acquire Crexus (NYSE:CXS), another mortgage REIT specialized in commercial mortgages. So the question has come up as to whether it could make sense for NLY to also purchase CIM. If that were to happen, it would force a rapid...

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