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Javelin Buy rating removed at Oppenheimer

  • Javelin Mortgage (JMI) is quietly 27% higher since late November amid agreeing with dissident investor Phillip Goldstein's Bulldog Investors to speed up its share repurchase program.
  • The stock was at a 20% discount to book just before Thanksgiving when Bulldog raised its stake and threatened to try and shake up the board. The company has since boosted its buybacks and Bulldog has pulled its slate of board nominees. At $14.86 at the close on Friday, the stock now trades at a slight premium to September 30 book value - premiums to book are rare in the mREIT sector today.
Comments (2)
  • Peter Scannson
    , contributor
    Comments (17) | Send Message
     
    JMI deserves to trade at a premium its one of the few mREITS thats locked in its monthly dividend payment of $0.15 for the whole of 2014. Morover its heavily shorted causing added demand to buy thus raising its pps
    13 Jan, 12:30 PM Reply Like
  • Positive Concavity
    , contributor
    Comments (152) | Send Message
     
    A flat declared dividend is more a function of accounting than an indication of economic return. If mREITs with similar portfolios are trading at a discount it doesn't make sense for this portfolio to trade at a premium. I think there is more risk to this mREIT vs. others that have lower risk portfolios and are trading at a discount.
    13 Jan, 05:19 PM Reply Like
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