Seeking Alpha

Armour Residential (ARR) announces a secondary offering of 65M shares (current float about 309M...

Armour Residential (ARR) announces a secondary offering of 65M shares (current float about 309M shares) and preliminary Q4 data: REIT income should approximate dividends paid of $0.27. Book value/share of $7.28-$7.30 on Dec. 31 dropping to $6.70-$6.76 today. Shares -2.4% AH to $6.92. (PRs I, II)
Comments (6)
  • looks like they are going to get hammered again. glad i sold all mine. may buy some back short term. lets see where the bottom is going to be.
    13 Feb 2013, 04:26 PM Reply Like
  • I sold my ARR a while back after the last dividend cut. I am confused!! Dont mreits usually do a SPO while trading higher than book value. This is a low class operation, greedy and if I remember correctly being run by the guy from Bimini Capital.
    13 Feb 2013, 04:35 PM Reply Like
  • I sold mine yesterday, bought some ARR+B instead. I May get back in if it trades below the new est. book value of $6.70-6.
    13 Feb 2013, 06:50 PM Reply Like
  • Yes. They have diluted book value with the preferreds and now book is estimated to be $6.76, versus $7.28 at year end 2012. So $6.84 is technically above (a slashed) book value. This management is managing for their own wealth building. They get paid on assets under management ( via secondaries). This is the latest permutation of Bimini Capital, equity shareholders be damned. The coup de grace will be if the also slash the dividend.
    14 Feb 2013, 04:10 AM Reply Like
  • Ponzi Scheme
    14 Feb 2013, 02:06 PM Reply Like
  • How does Bimini Capital fit into all this?
    14 Feb 2013, 06:19 PM Reply Like
DJIA (DIA) S&P 500 (SPY)