Seeking Alpha

More on Western Asset Q4 results

  • Core earnings of $0.70 per share fell from $0.83 in Q3.
  • Book value per share of $15.27 fell from $16.81, but the decline includes the payout of $2.35 (cash and stock) in dividends. The stock portion of the dividend boosted the share count to 26.85M shares from 24.3M.
  • Net interest spread of 2.15% falls 13 basis points from Q3. CPR of 5% dips from 5.3%. Leverage drops to 6.4x (6.9x when adjusted for TBA position) from 8.1x (9x when adjusted for TBA position).
  • Company continues to move portfolio more into non-agency holdings which account for 15% of exposure at year's end vs. 8% at the end of Q3.
  • WMC -0.9% premarket to $16.19.
  • CC at 11 ET
  • Press release, Q4 results

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Comments (3)
  • 11802571
    , contributor
    Comments (126) | Send Message
     
    Review the insider activity on WMC.
    It isn't always the final determination of a company's worth, but when insiders show a pattern of buying and are not selling, that tells you something about
    their confidence in the company's expected performance and in the direction
    they expect their industry to take. mho, of course.
    Dividend payments give one staying power during the fluctuations in stock price,
    as well. I like this bet.
    7 Mar 2014, 10:42 AM Reply Like
  • Joe Snow
    , contributor
    Comments (264) | Send Message
     
    Or the insiders could be buying so that you only think they have confidence in the company to get you to buy to pump up the stock price so they can unload it at an even higher price later. Then when the price of the stock falls, you end up taking the loss and they buy the shares back for less when your stop loss kicks in. Google "pump and dump".
    9 Mar 2014, 09:30 AM Reply Like
  • grahamjim
    , contributor
    Comments (86) | Send Message
     
    $16.81 * 24.3 / 26.85 = $15.21

     

    The book value fell a little less than what would be expected just from the stock payout; did the total assets rise a bit?
    7 Mar 2014, 10:46 AM Reply Like
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