Anyone interested in CMO at 4 bucks? Assuming NAV will take a slight haircut to about $7/share, you get the assets at about 57% of what they are worth in the market. Last Q's dividend was .18 on earnings of .19. I, and many others estimate the dividend will be .14-.15 this Q. At the .14 figure, assuming the dividend holds (a big assumption), the stock is pegged to yield 14%. Let's say the div. drops to .12, yield drops to a mere 12%. Huge share buyback is in place, and probably ongoing.
Comments anyone? The above, of course, is my opinion only, and, as has happened many times in the past, I could very well be wrong! |
