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Orchid Island Capital: A Deep Look Part I
- Orchid Island is a REIT managed by the co-founder of Bimini CEO since 2008.
- Orchid Island was a wholly owned subsidiary of Bimini, and went public in 2013.
- Bimini is a REIT founded in 2003, listed on the NYSE in 2004, and now trades OCTBB.
- If you would have invested in Bimini's IPO (with reinvested dividends) you would currently have losses of 99%.
- Bimini has been mixed up in litigation dating back to 2007, and still has a case ongoing, which could impact Orchid Island's performance.
Orchid Island Capital: A Deep Look Part II
- The management agreement is typical of externally managed mREITs.
- The 2012 Equity plan is a compensation plan put in place before the company went public.
- The recent public offerings put the company above $100 million in stockholders’ equity, increasing expenses per the management agreement.
- Higher equity also means higher management fees.
- Orchid Island is currently overvalued trading at a premium to book with an expected increase in expenses later in the year.
CYS Investments Still Has The Best Upside Potential
- CYS Investments remains the highest dividend paying company in the industry; paying nearly 15% in dividends annually.
- CYS was on another level in the first quarter, posting the best economic returns.
- CYS remains undervalued, trading at 90% of book.
- CYS reduced leverage, but still had an interest rate spread net of hedge, including drop income of 1.89%.
Avoid These 2 High-Yield Mortgage REITs
- In each of the past five quarters, WMC has seen a reduction in book value.
- The offering of common stock was priced ~$14.75 net expenses.
- The recent public offering was more than half of the previously reported total outstanding shares.
- ARMOUR has authorized the repurchasing of stock, and didn't exercise it before.
- Over the last four years, ARMOUR has cut its dividend by over 50%.
- American Capital Agency: Conference Call Turned Circus Act
- CYS Investments Has The Best Upside Potential
- Possible Trade Created By Public Offering
- A Look Back At 2013, Issuing Common Stock The Wrong Way
- Look For An Exit, Apollo Residential Mortgage, Inc.
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- Buy PennyMac Mortgage Investment Trust
- Sell Apollo Commercial Real Estate Finance, Inc.
- Add Arbor Realty Trust To Your Portfolio
- Wait On Cherry Hill Mortgage Investment
- Add ZAIS Financial To Your Portfolio
- PennyMac Will Reward Your Portfolio With Great Returns
- Two Harbors Is Likely To Cut Its 2013 Dividend