MPG Investor

Why I am Selling Thornburg Mortgage

Bush isn't the issue (at least not for this topic); banks were making rediculous loans and are paying for it as much as consumers. When I bought a house in 2005 in the Bay Area, the bank was more than happy to offer to lend out 100%-115% of the value of the house, little to nothing down. Point it Thornburg is paying for it. Unless you bought in very low, or you really need the cash, or really need the tax loss, there's no point selling now as there isn't much else to lose that hasn't already been lost. That said, they have just over 100 loans out of their 37,000 loan portfolio that may be delinquent or become delinquent, which is stellar. Their recent actions may not have shareholder value in mind but I believe there are still value in the shares. As he said, they are a well run company and those are typically the ones that do best in bad times. Disclosure: I own about 100 shares bought at $2. If in a few years they are back on their feet, you will enjoy the dividend yield that's based on a $1 stock.