siegfried

Mortgage REITs: Ignore GAAP, It's All About the Cash

If the particular REIT is not going bankrupt i.e. there are no short term financing issues, and yielding over 15%, then reducing assets and buying back stock makes financial sense. Basically buying back dollars for 85 cents. There is opportunity in panic.

Newcastle's Need for Liquidity Puts the Dividend at Risk

actually, if the downside is $2/share, the stock should trade at $14. traded over $12/share briefly today, look for run up to $14/share prior to march 14th dividend announcement, some volatility after that, then a drop on the ex-dividend date. QED/

Newcastle's Need for Liquidity Puts the Dividend at Risk

they sold enough assets to fully pay off all their short term debt, now they're earning, as of february 25th according to their press release, a 2% on the remaining $6.7 billion in assets. write off 100% of their "MH and residential" loans and you have 2% on $6.3 billion or $31.5 million in income per quarter. No more write offs and you have $33.5 million in income. 52.8 million shares outstanding means and less $5 million of overhead per quarter gets to about $.50/share in funds available for dividend, a significant drop from the current $.72 but still a 20% yield at current stock price.