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Strategies & Market Trends : Calls and Puts for Income -- Ignore unavailable to you. Want to Upgrade?


To: Jerome who wrote (1051)7/27/2007 2:34:12 PM
From: Bridge Player  Respond to of 5891
 
The dividend was declared on June 15th.

Quite likely that things have gotten a lot worse since then, and also that it will be cut sharply or eliminated next quarter. And they just announced major layoffs.

But even so.......



To: Jerome who wrote (1051)7/28/2007 7:43:28 AM
From: dealmakr   Read Replies (2) | Respond to of 5891
 
Hi Jerome,

Looks like AHM won't pay up;

American Home Mortgage Investment Corp. Delays Payment of Quarterly Common Stock and Series A and Series B Preferred Stock Dividends

biz.yahoo.com

I haven't seen this type of thing happen too much over the years, not paying after declaring the dividend, but not a real good sign. IMHO the risk is still to the downside on these plays and the option premiums are weighing the size of that risk. You can look back at NEW,NFI,DRL etc. to see.

regards,

dealmakr