Chimera Investment (CIM)
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Time to buy this. Long. Good divd
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navallier:B, moneycentral:9 div>12%
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rising dividend (8% to 12% in six months) dealing in Government backed mortgages - how can ya lose-eh??
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I just like this for a dividend play, and growth combined. Might be picked up by a richer company.
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div oct 1st 12.28%
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Grant's Interst Rate Investor
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Market Recovery and Still paying High Dividend!
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buying mortgages guaranteed, low rate, high return
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So let me see if I got this straight.... You are going to sell me securities at 20 cents on the dollar.... And help cover my losses.... OK!
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trend down
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Shorting Mortgage Investment.
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Chimera's stock price has understandably followed the sector southward in the last few months. As of my typing this, though, there finally FINALLY seems to be light visible at the end of the tunnel for housing. CIM may bounce up and down for awhile, but I like it at this price for the mid-term, and I am investing in CIM for real this morning. I've been waiting for the technicals to come around for months, and they have.
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A business model not fullly understood, so it's grouped in with the REIT's that CIM is taking advantage of by snapping up under valued assets that are over leveraged and have to be liquidated to raise capital.
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Q: hey guys...perk up !
I also like a company that buys REITS that are throwing up on themselves...so to
speak...lol Doug Kass said that this morning.
CHIMERA INVESTMENT (CIM)...cramer likes these guys also.
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posted by James Altucher on 11 months ago
I'm not sure thats completely true. When Buffett was smaller (his hedge fund
days in the
late 50s and early 60s) he primarily made his money from merger arbitrage and
relative
value arbitrage. Even when he played with slush money in his personal account he
would buy penny stock REITs that were liquidating where there was a definite arb
between their stock price and their liquidation value. At heart he was a
Graham-ite. When he made the
statement that Bambam refers to I tihnk he was primarily referring to merger
arbitrage
techniques.
---------------
But Buffett doesn't agree with pure Graham theory anymore, and arbitraging was a
more
profitable enterprise a half century ago, so its highly unlikely he'd be
successful at it
with only $1million to invest in such an endeavor. More important, the tools
necessary to
consistently succeed as such things are likely beyond the cost of an individual
with
$1million to invest. If, however, you could spend millions to make your
$1million grow,
perhaps that would be a possibility.
posted by James J. McBuffett on 11 months ago
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posted by mock portfolio on 11 months ago - Ignore this user
Buffett actually pulled the "arb between their stock price and their liquidation
value"
strategy just recently with CDCO
posted by mock portfolio
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http://www.stockpickr.com/members/showforums/1/148/
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Sounds good. Watching and waiting
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M. Farrell has earned a highly excellent rep. and proved his genius at nly. CIM is his response to an opportunity he sees....
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Real sleeper. Buying good paper for pennies on the dollar!

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