Comments on: Chimera Swoon Offers REIT Investors Opportunity

By: garypalys

garypalys — Fri, 19 Feb 2010 03:15:24 +0000

What ever the reason, I am seeing some serious red in my portfolio on this one… Looks like I will be holding for a very long time!

By: Patrick Harden

Patrick Harden — Fri, 19 Feb 2010 03:14:25 +0000

Q4 earnings came in below consensus and core earnings were below the current dividend. Additionally big sell off in agency MBS, which comprise about 25% of CIM’s portfolio.

By: sliman

sliman — Fri, 19 Feb 2010 03:14:06 +0000

The author never explained why CIM dropped 10% from the earnings report. Something must have triggered it.

By: Patrick Harden

Patrick Harden — Fri, 19 Feb 2010 03:13:46 +0000

Chimera’s dividend is likely to increase from the current levels because the Company is beginning to record taxable income arising from the accretion of the original market discount on the non-agency MBS it owns. I expect Chimera’s taxable income to exceed its core earnings for the next few quarters, meaning the Company will need to pay higher dividend than indicated by its earnings. The careful addition of more leverage should help close that gap between GAAP and taxable income.

By: Rohan Pease

Rohan Pease — Fri, 12 Feb 2010 15:11:49 +0000

Thanks for the analysis, I owned this one for a while before having to cut my losses. I followed Mike Farrell(great exec.), but the economic conditions were too much even for his subsid. of Anally.