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Strategies & Market Trends : Value Investing

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From: MCsweet9/1/2011 2:22:10 PM
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Mortgage REITS and WTM

2 totally different subjects.

Possible SEC regulation: Mortgage REITs are down on news they could be regulated like closed-end funds (hence forced to reduce leverage and dividends go down). This is just a possibility, not a certainty. Would likely take 4-6 months to occur (after comment period, etc).

Anybody follow WTM? There is a tender offer with odd lot provision, so looks like you can buy 99 shares or less with floor of 385 and ceiling of 435. If the company looked good, I'd buy it at 396 and take my chances that I could sell it higher in the market or in the tender, but the company doesn't look that cheap on a fundamentals basis, so I am passing for now.

MC
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