In the last three years, CIM has paid $1.58 in dividends. I am not saying that it's a great stock. But remember to factor in the dividends when you are calculating returns.
It's a $3 stock with a 12% dividend. If it didn't have significant risks, it would be a $10 stock.
You can like it or not like it. Maybe, after considering those risks, you are a buyer. Or maybe you are a seller. But don't expect it to look like Coca Cola.
Hedge Funds Are Buying These 3 Outperforming And Undervalued Financials [View article]
Crexus is the subject of a buyout agreement with Annaly Capital: $13.00 plus accrued dividends, unless Crexus gets a better offer before March 15th (I think.) It's pretty close to Zero downside risk, plus the opportunity for a gain, if someone raises the ante. It might be an interesting play for a hedge fund, but I don't see this as a purchase for the average investor.
I would be very pleased to see someone raise the bid to your $18.24 target price, but it is VERY unlikely.
Buy PNC Financial: A Cheap Dividend Bank With Expanding Net Interest Margins [View article]
Uh, you may not have heard about it, but there was tremendous political pressure on the banks to boost their capital in the 2008-2011 time period. PNC accomplished this by (among other things,) eliminating their dividend briefly, and then gradually raising it with regulatory permission.
PNC DID take TARP money because they were ordered to. They have long since paid it back. But they used the TARP money to acquire National City Bank for pennies on the Dollar. Given the mortgage mess that came with it, they may wish that they hadn't. But the only other bidder for National City was US Bank, another conservative, well managed bank.
A better indicator of PNC's strength is that they have the capital base, even in this difficult regulatory environment, to move aggressively into the southeast and the south by acquiring segments of weak banks (the Bank Atlantic branches, as well as a bunch of branches in the Atlanta area from another weakened bank), and Royal Bank of Canada's US operations, RBC Centura. They got them for a fraction of what they would have had to pay prior to 2008.
PNC is well managed, solid, and conservative. I just wish that they would pay me a better rate on my money market account.
Iraq says it will cancel Total's (TOT +1.6%) share in southern Iraq's Halfaya oilfield after the French company announced Tuesday it signed agreements to buy stake in two oil blocks in autonomous Kurdistan. Analysts say the area has huge potential reserves and offers more attractive contract terms than the Iraqi central government's deals. [View news story]
Collectors Universe May Have Just Bottomed [View article]
A couple of points:
On Duncan's selling: I don't know him, don't know his motivations. But it is the end of the year. Maybe he has capital losses that he can't use, and is selling some shares of CLCT at what will amount to a tax-free profit.
I am long the stock. I am a coin collector, and a user of their grading and pricing services. That is what alerted me to the stock in the first place.
I think that the best way to maximize CLCT's value would be for someone to do a leveraged buyout, and take it private. It won't be me, but if I did, I would sell off everything except the coin business, which should, in itself, be quite profitable as a private company. Their attempts at diversification haven't been successful. So sell/give away the other operations to their managers on some sort of deferred payment basis, and let them attempt to be successful private companies too.
Collectors Universe Is Not a Mark McGwire Home Run, But Is a Good Value Play [View article]
I am also long the stock. (Not a lot, but in the interest of full disclosure.....) As a long-time serious coin collector, I wan to add that PCGS is regarded quite highly by collectors and dealers. With the strong interest in collectibles, their revenues should improve: as the value of your coins go up, the "value added" of having them professionally authenticated and graded increases.
All Signs Point to a Major Shift in the Economy [View article]
"Mortgage rates have come down along with interest rates, and this was supposed to jump-start lending. Yet low rates have done very little to spur lending. Real estate loans continue to plummet, proving that economic orthodoxy concerning interest rates is just plain wrong.'
I don't think that you've "proved" anything.
1. Banks are under regulatory pressure to reduce their exposure to real estate mortgages of all types. 2. Underwriting standards for mortgages have been increased across the board. Many potential borrowers cannot qualify 3. Many borrowers who would like to refinance their homes to take advantage of lower rates cannot do so because the decline in the values of the homes means that they cannot qualify for a mortgage big enough to pay off the existing mortgage. All of these factors are helping to constrain demand for new mortgages.
In "the good old days", Zions Bank was an aggressive buyer of brokered COMMERCIAL real estate loans from around the country, as well as residential loans. You've always got to be cautious with brokered loans. I suspect that this is the reason that so much "smart money" is betting against Zions.
Chimera Investment Beats Delisting Deadline; 2011 10-K Highlights [View article]
Chimera Investment Beats Delisting Deadline; 2011 10-K Highlights [View article]
You can like it or not like it. Maybe, after considering those risks, you are a buyer. Or maybe you are a seller. But don't expect it to look like Coca Cola.
Hedge Funds Are Buying These 3 Outperforming And Undervalued Financials [View article]
I would be very pleased to see someone raise the bid to your $18.24 target price, but it is VERY unlikely.
Wall Street Breakfast: Must-Know News [View article]
Buy PNC Financial: A Cheap Dividend Bank With Expanding Net Interest Margins [View article]
PNC DID take TARP money because they were ordered to. They have long since paid it back. But they used the TARP money to acquire National City Bank for pennies on the Dollar. Given the mortgage mess that came with it, they may wish that they hadn't. But the only other bidder for National City was US Bank, another conservative, well managed bank.
A better indicator of PNC's strength is that they have the capital base, even in this difficult regulatory environment, to move aggressively into the southeast and the south by acquiring segments of weak banks (the Bank Atlantic branches, as well as a bunch of branches in the Atlanta area from another weakened bank), and Royal Bank of Canada's US operations, RBC Centura. They got them for a fraction of what they would have had to pay prior to 2008.
PNC is well managed, solid, and conservative. I just wish that they would pay me a better rate on my money market account.
Iraq says it will cancel Total's (TOT +1.6%) share in southern Iraq's Halfaya oilfield after the French company announced Tuesday it signed agreements to buy stake in two oil blocks in autonomous Kurdistan. Analysts say the area has huge potential reserves and offers more attractive contract terms than the Iraqi central government's deals. [View news story]
Collectors Universe May Have Just Bottomed [View article]
On Duncan's selling: I don't know him, don't know his motivations. But it is the end of the year. Maybe he has capital losses that he can't use, and is selling some shares of CLCT at what will amount to a tax-free profit.
I am long the stock. I am a coin collector, and a user of their grading and pricing services. That is what alerted me to the stock in the first place.
I think that the best way to maximize CLCT's value would be for someone to do a leveraged buyout, and take it private. It won't be me, but if I did, I would sell off everything except the coin business, which should, in itself, be quite profitable as a private company. Their attempts at diversification haven't been successful. So sell/give away the other operations to their managers on some sort of deferred payment basis, and let them attempt to be successful private companies too.
Collectors Universe Is Not a Mark McGwire Home Run, But Is a Good Value Play [View article]
All Signs Point to a Major Shift in the Economy [View article]
I don't think that you've "proved" anything.
1. Banks are under regulatory pressure to reduce their exposure to real estate mortgages of all types.
2. Underwriting standards for mortgages have been increased across the board. Many potential borrowers cannot qualify
3. Many borrowers who would like to refinance their homes to take advantage of lower rates cannot do so because the decline in the values of the homes means that they cannot qualify for a mortgage big enough to pay off the existing mortgage. All of these factors are helping to constrain demand for new mortgages.
The Trouble With Regional Banks [View article]