Jerome,
AHM seems like a risky bet to me. Stocks with PEs of 5 and dividend yields of 13% normally are. If you are very nimble, you may be OK, but this one is not for the feint of heart or for conservative income players.
From Reuters Friday:
NEW YORK, June 15 (Reuters) - American Home Mortgage Investment Corp. (AHM.N: Quote, Profile , Research), a specialist in prime and near-prime home loans, on Friday declared a quarterly dividend of 70 cents per share, 38 percent lower than the prior quarter, amid difficult conditions for many mortgage lenders.
The Melville, New York-based real estate investment trust had been expected to lower the dividend after rising delinquencies and a lack of buyers for some of its loans cut into earnings.
In April, the REIT said first-quarter profit fell 44 percent to $30.7 million, or 54 cents per share. It also cut its 2007 earnings forecast for a second time in three weeks, projecting profit of $3.25 to $3.75 per share. The REIT makes more than 2 percent of U.S. home loans.
Sam |
