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Annaly (NLY -0.5%) investors may want to pay attention to the meltdown in the shares of Chimera...

Annaly (NLY -0.5%) investors may want to pay attention to the meltdown in the shares of Chimera Investment (CIM -8.7%) on the back of an SA article suggesting the firm (which hasn't filed an earnings release or financial information since 2011 Q3) could be headed towards a $0 dividend and/or delisting. Annaly owns a sizable chunk of Chimera and manages the company through a subsidiary.
Comments (23)
  • DeepValueLover
    , contributor
    Comments (8158) | Send Message
     
    Ouch...that's gotta hurt!
    26 Jul 2012, 03:46 PM Reply Like
  • Joe Eifrid
    , contributor
    Comments (336) | Send Message
     
    The article was stupid. The author plotted the recent decreasing dividends on a calendar a drew a straight line to hit zero sometime in 2013. You could do the same thing with the AAPL chart.
    The author wrote;
    "At the rate of decline experienced in the Chimera' dividend for the first two quarters of 2012, the company will not be able to pay a dividend by the second quarter of 2013. "
    That is so stupid!
    26 Jul 2012, 03:56 PM Reply Like
  • kingdad
    , contributor
    Comments (835) | Send Message
     
    Just another ill-informed basher who has probably shorted the stock
    26 Jul 2012, 03:58 PM Reply Like
  • Sacristan
    , contributor
    Comments (42) | Send Message
     
    I agree that there could be a motive for this article to drive Chimera down and maybe legal action is needed against authors of defamatory articles is needed. Will still stay long on CIM. Nearly increased holding by 200% in COL.MC 2 days ago and they have risen from 0.64 euros to 1.15 euros today - wish I had followed my intuition
    26 Jul 2012, 04:33 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (1890) | Send Message
     
    Sacristan: Lemme get this straight...In the eye of the storm, you are buying, holding CIM not selling? Simple Question, not even why.

     

    Capt. Brian
    The Lost Navigator
    26 Jul 2012, 05:55 PM Reply Like
  • Patrick Harden
    , contributor
    Comments (427) | Send Message
     
    Somehow I doubt an article on SA with no new information would cause a stock as liquid as Chimera (CIM) to trade more than 5x normal volume. I think a large institutional investor probably traded out of the stock and people got stopped out at $2.25.
    26 Jul 2012, 04:02 PM Reply Like
  • cngarch
    , contributor
    Comments (4) | Send Message
     
    Sombody is using the media and shorting the stock as usual.
    26 Jul 2012, 04:07 PM Reply Like
  • Mrnomad
    , contributor
    Comments (315) | Send Message
     
    Yes, the article may have been questionable in value but not much better than the WSJ and CNBC headlines on MSFT which sent shares tumbling. U had to sift thru the details to realize that MSFT has good prospects but media needs sensational, attention grabbing headlines to sell their advertisements.

     

    My best trade on NLY is to sell premium < 16 and buy it back when the share price => 17. That strategy has performed better than the div and allowed me to be out of the position almost 50% of the time.
    26 Jul 2012, 04:09 PM Reply Like
  • MrMark
    , contributor
    Comments (4) | Send Message
     
    Explain what you mean by your statement: sell premium < 16 and buy it back when the share price => 17. I have no clue as to your meaning, but am interested -I believe you mean the opposite - right - Thanks.
    26 Jul 2012, 04:25 PM Reply Like
  • AlbionWood
    , contributor
    Comments (769) | Send Message
     
    Now that's really contrarian investing, right there. Buy high, sell low. If you can make money doing that, you really have got it made. ;)

     

    I think by "premium" he means put options. Sell puts when stock price drops below 16, then buy them back when price climbs. If Fidelity would only allow me to sell puts, I would be doing this too.
    26 Jul 2012, 05:09 PM Reply Like
  • contaylor
    , contributor
    Comments (17) | Send Message
     
    Something is wrong here!!!
    26 Jul 2012, 06:20 PM Reply Like
  • contaylor
    , contributor
    Comments (17) | Send Message
     
    Some thing not quite right here?????
    26 Jul 2012, 06:21 PM Reply Like
  • Joe Eifrid
    , contributor
    Comments (336) | Send Message
     
    "Explain what you mean by your statement: sell premium < 16 and buy it back when the share price => 17. I have no clue as to your meaning, but am interested -I believe you mean the opposite - right - Thanks. "

     

    I believe he is saying selling puts at less than 16 (usually right after ex-div, and buying them back before the next ex-div.
    26 Jul 2012, 08:43 PM Reply Like
  • Allan123
    , contributor
    Comments (42) | Send Message
     
    Mrnomad,

     

    I think you mean the other way around, don't you? -
    - Sell premium > 17 ... & buy back when =< 16.
    26 Jul 2012, 04:17 PM Reply Like
  • Joseph P. Porter
    , contributor
    Comments (681) | Send Message
     
    Whether or not the author was trying to misconstrue data in order to manipulate investors' attitude towards CIM, the fact remains that CIM has been cutting their dividends on a regular basis lately (although they at least still pay dividends), and they're approaching the one-year mark in delayed SEC filings. Good news has been hard to find where CIM is concerned.

     

    My question is to what extent CIM's situation is going to impact NLY, which is usually touted as a reliable mREIT. The two mREITs operate on different models, but would a connection between the management teams of the two really imply that NLY is also in danger? Not that I wouldn't like to see the price go down a little - according to FINVIZ, NLY is trading at about a $.40/share premium.
    26 Jul 2012, 06:11 PM Reply Like
  • mamita
    , contributor
    Comments (8) | Send Message
     
    Look at the high volume today. Who is making money? Short sellers. The shorts are looking for a reason to destroy another company. They did that recently with groupon. Where is SEC to investigate the author. I am going to report this incident to SEC to look into it. Do not listen to this author please. Hold on to your shores in Cim and Nly.
    26 Jul 2012, 06:21 PM Reply Like
  • Northwest Investor
    , contributor
    Comments (1305) | Send Message
     
    No short seller "destroyed" CIM -- what's destroyed this company is their management. Lose %85 of investors' capital, while failing to file required regulatory documents . . . that's an extraordinarily bad performance.

     

    Report whatever you want to the SEC, my guess would be that their CIM file is rather more concerned with "why haven't these folks filed as required" than the imagined activities of short sellers
    26 Jul 2012, 06:55 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8158) | Send Message
     
    When you flip on the light in the kitchen at night and see a scurrying cockroach do you think, "Oh, I'm sure that's the only one..."?

     

    Nope.

     

    You know there are thousands more...hidden.

     

    So I am getting very nervous about what is going on @ NLY if they see what is happening at CIM and say nothing.

     

    Something isn't right here...

     

    hmmmm...
    26 Jul 2012, 08:40 PM Reply Like
  • GEOESQ
    , contributor
    Comments (16) | Send Message
     
    I HAVE YET TO SEE ANY HARD FACTS. HOW MUCH CIM DOES NLY OWN? WHAT % IS THAT OF NLY WORTH?
    CAN SOMEONE ANSWER THOSE ?
    26 Jul 2012, 10:44 PM Reply Like
  • edward1517
    , contributor
    Comment (1) | Send Message
     
    sold Cim for a loss on 4000 shares -pay attention -things are happening quick-it could go down further and get delisted-
    I did this on the advice of a sr.vp of a brokerage firm buddy knows- I hope I am wrong-for everyone but we are out after only 1 dividend check
    27 Jul 2012, 12:19 AM Reply Like
  • Boog
    , contributor
    Comments (103) | Send Message
     
    yeah - right.....talk about transparent....
    30 Jul 2012, 02:57 PM Reply Like
  • Joe Eifrid
    , contributor
    Comments (336) | Send Message
     
    Funny...

     

    CIM- Net Income Avl to Common (ttm):555.28M

     

    AMZN - Net Income Avl to Common (ttm):560.00M
    27 Jul 2012, 09:55 AM Reply Like
  • pankaj123
    , contributor
    Comments (84) | Send Message
     
    Article written on one sided bearish information.Author is ignoring the fact that CIM has low leverage because of it's non agency position and it's book value seems ok.Low short term rates are going to be with us for a while.Other problems are well known and already factored in the stock value.Today I have again taken a position in it,can't go wrong at this price.
    27 Jul 2012, 12:04 PM Reply Like
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