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Time to move up. Everybody is buying to get dividends at a very significantly premium price. Forget there are sellers, only keepers and buyers!
Shapping up to be a stunner!
This keeps going up on low volume, what happens when we get some good news and big volume?
Must-know: Why home price appreciation is leveling off
"The Federal Housing Finance Agency (FHFA) House Price Index
The FHFA House Price Index differs from the other house price indices like Case-Shiller and Radar Logic in that it only looks at houses with mortgages guaranteed by Fannie Mae and Freddie Mac. This means all the home prices are below the conforming threshold, which is $417,000. It also means the borrower has a mortgage, which eliminates cash-only transactions. And finally, the FHFA House Price Index eliminates jumbos. This makes it more of a central tendency index.
Real estate values are big drivers of consumer confidence and spending, so they have an enormous effect on the economy. The phenomenon of “underwater” homeowners—homeowners who owe more than their mortgage is worth—has been a major drag on economic growth. Underwater homeowners are reluctant to spend and can’t relocate to where the jobs are. So real estate and mortgage professionals watch the real estate indices closely.
Real estate prices are also a big driver of credit availability in the economy. Mortgages and loans secured by real estate are major risk areas for banks. When real estate prices start falling, banks become conservative and reserve funds for losses. Conversely, increasing real estate prices make the collateral worth more than the loan, which encourages banks to lend more.
23 consecutive months of year-over-year gains
The 7.6% year-over-year gain was the second highest since mid-2006, and it puts the index back at April 2005 levels. The rate of price appreciation appears to be slowing. While most indices showed the housing market bottoming about February of 2012, FHFA shows the bottom around May of 2011. Perhaps distressed sales dominated at the end of 2011, which pushed the other indices lower.
The theme of the real estate market for the past year has been tight inventory. This theme was borne out again in the National Association of Realtors Existing Home Sales Report. Professional investors (think hedge funds and private equity firms) have raised capital to purchase single-family homes and rent them. Lately, professional investors have reduced their buying, which is a sign that the easy money has been made in the distressed-to-rental trade.
Implications for mortgage REITs
Real estate prices are big drivers of non-agency REITs, such as CYS Investments (CYS), Newcastle (NCT), and Redwood Trust (RWT), and less of an important factor for agency REITs, like Annaly (NLY) and American Capital (AGNC). In fact, increases in real estate prices can be a positive for the non-agency REITs and a negative for the agency REITS. When prices rise, delinquencies drop—which is important because non-agency REITs face credit risk. However, for agency REITs, which invest in government mortgages, rising real estate prices can drive prepayments, which negatively affects their returns. Rising real estate prices also help reduce stress on the financial system, which makes securitization easier and lowers the cost of borrowing. Finally, REITs with large legacy portfolios of securities from the bubble years are able to stop taking mark-to-market write-downs and may revalue their securities upwards. Since REITs must pay out most of their earnings as dividends, higher earnings mean higher cash flows to investors." --> Except for BMNM for now, they can use their earnings to repay debt and grow in book value. This will take two quarters IMO and then we will see very, very, very nice dividends. In two quarters, mark my words, BMNM will be worth $1/share
http://finance.yahoo.com/news/must-know-why-home-price-170026698.html
Probably a couple weeks yet.
My last purchase was at .23 but will add as I can, also holding for Divy, not selling.
I know what you mean. orc reported last week bmnm should be soon
I am holding 80,000 shares and will keep all my shares, because dividends are coming in two-three quarters.
Wish I had more money!
well looks like .58 is out. .70 on ask now.
Good.Look:BMNM holds almost 1million shares of ORC, which gives the company a 2million dollar annual dividend (at .18dollar/share monthly dividend, which is very likely to increase in this climate). That EPS for BMNM is almost 40% of the current share price (without their own investment profits)!
IF BMNM decided to sell it's entire stake in ORC that would be $12-13 million (which is likely to increase significantly in this climate)! I don't think that will happen, but it underlines the growth BMNM can make. As I've said share price of BMNM will be above the dollare in less than two quarters.
that was me buying this morning. its taking long time to fill orders. going to buy more. with such a low float MM probably does not have many.
21,600 shares bought at .58 followed by 600 shares being sold at ,45. Do they think we are stupid?!! All mreits report excellent results and are up today as well. BMNM will end today at .58 or higher.
All mreits up.ORC already higher than before going dividend (.18dollars/share)!!!
NLY shows better than expected results! ORC showed very good results, AGNC did perform well... If this continues the same way, BMNM will be above 1dollar/share in two quarters.
This is looking really nice!
Its a monster just starting to beast!
BMNM management not only received shares from the annual compensation plan ("acquisition") but also decided to buy shares ("purchase") instead of receiving cash money (on which they should have paid taxes instead). The purchase at management positions is ALWAYS at premium price (here it is $.38/share). IMO $.38/share is the ultimate and ridiculously low bottom.
http://finance.yahoo.com/q/it?s=BMNM+Insider+Transactions
From what they get from dividends from ORC alone(at $.18/share, which means + $2million annualy, which is an EPS of about 40-50% of the current share price) so without calculating their own investment profits, share price should be way above $.50/share right now (before quarterly earnings).
At this point in time, I would say they deserved it.
On February 19, 2014, Bimini Capital Management, Inc. (the "Company") issued a total of 757,895 shares of fully vested Class A Common Stock (the "Shares") to its executive officers. The Shares were issued as part of the bonus compensation that was paid to the executive officers with respect to services they performed during 2013. The Shares were valued at $0.38 per share, which was the closing market price of the Class A Common Stock on the day the Company's Compensation Committee set the bonuses. Issuance of the Shares was exempt from registration under the Securities Act of 1933 pursuant to Section 4(a)(2) thereof.
Annual EPS on current ORC dividend=44% share price
The company receives 2,120,000 dollars annually on current .18dollar/share monthly dividend from ORC. The company holds 12m outstanding shares (including the issuance of 750,000 shares to the executives for their annual compensation bonus). That means BMNM is able to report an EPS of .02 annually on ORC dividends only!!! Which is 44% of the share price (currently .44dollars/share). Knowing that BMNM management is the same management as ORC, and ORC gives more than 1,000,000 dollar net profit guidance for this quarter, we may believe that BMNM will report profits as well. So X+530,000 dollars this quarter. Seriously undervalued.
In March, second or third week.
It will pop soon!
BMNM .40 bid, ok look out!
Knowing that ORC monthly dividends will only increase, BMNM makes more than $ 2 million annualy from dividends only. That's without their own investment profits an annual profit of 0,2 EPS! That is huge! BMNM is seriously undervalued!
Price won't stay here long!
"Bimini owns 981,665 shares of our common stock, which represents approximately 18.1% of the aggregate outstanding shares of our common stock. We believe that Bimini’s ownership of our common stock aligns our Manager’s interests with our interests."
http://ih.advfn.com/p.php?pid=nmona&article=61087372
ORC management is the same management as in BMNM. This is what ORC has gained until the end of December 2013:
"We estimate that, when finally determined, our book value as of December 31, 2013 will be in the range of $44,700,000 to $44,800,000, or $13.38 to $13.41 per share. We estimate that, when finally determined, for the quarter ended December 31, 2013 we will have a net income in the range of $1,380,000 to $1,480,000. Net income for the quarter ended December 31, 2013 is estimated to include approximately $250,000 to $300,000 of net realized gains, an aggregate of approximately $1,650,000 to $1,700,000 of unrealized losses on our Agency RMBS portfolio, and approximately $700,000 to $750,000 of gains on Eurodollar futures contracts"
Monthly dividends of ORC from December on are: .180dollar/share
==> for the first quarter BMNM has gained from ORC dividends: 530.099 dollars
Plus of course the income they will have gained form their own operations (ORC made a very good net income, I'm sure BMNM will have made a very good net income as well, b/c of the same experienced management)! This will be a good quarter.
ORC,NLY,AGNC are up.BMNM will rise dramatically soon. I expect the book value to be around .45-.55 when management release next quarterly results. Dividends will follow.
I'm sure it will be.
"Gary Kain Is Buying Mortgage REITs At A Discount. Should You Follow His Expert Advice?"
http://seekingalpha.com/article/1999151-gary-kain-is-buying-mortgage-reits-at-a-discount-should-you-follow-his-expert-advice?source=yahoo
More information about inflation forecast:
current inflation was 1.50%
Forecast inflation for February is: 1.70%
Forecast inflation for March is: 1.93%
That makes me happy!
http://www.tradingeconomics.com/united-states/inflation-cpi
Inflation is coming! ye$$$$$$$ Healthcare costs increase, private Insurance policies increase... It is just the start, read:
Anthem to raise some premiums as much as 25%
"Up to 306,000 Californians with older, individual Anthem health insurance policies — unchanged by Obamacare — are subject to the rate increases
Thousands of Anthem Blue Cross individual customers with older insurance policies untouched by Obamacare are getting some jarring news: Their premiums are going up as much as 25%.
These increases, 16% on average, are slated to go into effect April 1 for up to 306,000 people — unless California regulators persuade the state's largest for-profit health insurer to back down.
Amid the fury last fall over canceled health policies, consumer advocates and state officials warned people that holding onto grandfathered policies purchased before the federal healthcare law was enacted in 2010 wouldn't shield them from significant rate hikes.
Walter and Kathy Warner of Westlake Village are facing a 25% rate increase, for a total of $1,822 per month. Their premiums had already jumped 53% since 2010, not including this latest change.
"I'm fed up with this company," Walter Warner said. "This degree of increase is unjustified."
The California Department of Insurance and the state Department of Managed Health Care are reviewing Anthem's proposed increase, and they are awaiting additional information from the company. Anthem is a unit of WellPoint Inc., the nation's second-largest health insurer.
The Affordable Care Act makes it easier for people in this situation to switch coverage because insurers can no longer deny applicants on the basis of preexisting conditions or charge them more because of their medical history. But changing plans isn't an appealing option for some consumers who like the benefits they have now and worry about losing access to their doctors.
Anthem Blue Cross said its plan to raise rates reflects that escalating healthcare costs are an economic reality industrywide. The company said customers do have new options thanks to the healthcare law.
"Many of the members affected here may be eligible for federal subsidies via the Covered California exchange and may have lower premiums if they decide to switch to an Affordable Care Act-compliant policy," company spokesman Darrel Ng said.
In recent months, state regulators have criticized major insurers for overstating what they expect to pay for patients' future medical costs in order to support substantial rate increases. Overall, U.S. healthcare spending has been growing less than 4% annually in recent years — the lowest growth rates in more than 50 years.
In comments filed with regulators, the California Public Interest Research Group Education Fund questioned why Anthem was raising premiums so far in excess of medical inflation. "We are very concerned Anthem proposed a rate hike this high without adequate justification," said Emily Rusch, CALPIRG's director.
Los Angeles resident and TV editor Kevin Bourque, 47, said his rates are going up 19%, to $327 a month. He said he may have to shop for a more affordable health plan now.
Bourque questioned Anthem's need for such a big increase. "I don't think costs have gone up that much," he said.
Other insurers have met resistance when boosting premiums on grandfathered policies. This month, state Insurance Commissioner Dave Jones faulted Blue Shield of California for an "unreasonable" increase of 10%, on average, for about 81,000 people who had grandfathered policies.
But state officials don't have authority to reject health insurance rate increases. An initiative on the November ballot seeks to change that by giving the insurance commissioner the power to deny excessive increases for health coverage.
Opponents of the ballot measure, including insurers, doctors, hospitals and business groups, say it doesn't address the underlying reasons for rising premiums. Critics also worry that stricter rate regulation could undermine the new state exchange, which negotiates rates with health plans as part of the healthcare law."
http://www.latimes.com/business/la-fi-anthem-health-rates-20140131,0,5252164.story#ixzz2rxoLoD00
You did good.Everything under $.50 is a bargain at this moment. After next quarterly results with a very high probability that the book value will be increased (all agency mreits are up, ORC did also increase its' dividend), everything under $.70 will be a bargain.
Picked up a little bit more this morning!
ORC up! $$$
Some insider buys at 12.5 for ORC.
http://www.filing4.com/company/1518621/transaction/
ORC and BMNM management+shareholders should drink champagne this weekend to celebrate the successfull capital increase of ORC. ORC is managed by the same management as BMNM. And BMNM holds a +/-40% stake in ORC.
Capital will be used to make us more rich and it has only cost a 10% premium on the previous share price of $13.5
I am looking forward to see both quarterly results and new calculated book values. Both should have increased substantially.
ORC and BMNM management+shareholders should drink champagne this weekend to celebrate the successfull capital increase of ORC. ORC is managed by the same management as BMNM. And BMNM holds a +/-40% stake in ORC.
Capital will be used to make us more rich and it has only cost a 10% premium on the previous share price of $13.5
I am looking forward to see both quarterly results and new calculated book values. Both should have increased substantially.
ORC maintains its' increased dividend from
december. Dilution here means increased LT value, they dilute to invest more. Means management is optimistic about the future. $$$$$$$
Looks like Orchid is diluting by about 1.5 million shares. Wonder what they are priced at?
Relax. Bmnm will make you rich. I am sure. You bought at the lowest possible entry price. You did well!
Just ponied up at $.35 for a starter position. Boy this thing wouldn't budge for my lower bids. Now what should we expect here? Obviously I'm out of my element here. Biotech's is where I normally spend my time. Good trading. Tom
Pay .35 at the ask.all mreits up again! ORC too
Trying to buy in this morning. MM's being stubborn and not giving me my price.
Middling rally in mREITs as rates drop
"It's a big dip in interest rates today (the 10-year yield off 8 bps to 2.88%), but buyers are doing little more than tiptoeing back into beaten-down mortgage REITs.
Leading are Annaly (NLY +1.3%) and American Capital (AGNC +1.4%), (MTGE +1.1%), and Armour (ARR +0.7%), CYS Investments (CYS +1.2%), and Invesco (IVR +1.1%) are also posting decent gains. All are quietly up in the area of 5-10% off of their 52-week lows set late last year."
The market is flip flopping all over the place based on fast taper, slow taper, stop the taper, etc...
We finally had gotten back to where good news was good for the market and bad news was bad for the market. Now, here we go again, back to bad news (ie, a lousy jobs report) is good news for the market (because the Fed can't possibly taper very much with this kind of number).
And since the Fed will now only taper real slow, that's good news for the mREITS.
http://seekingalpha.com/news/1502401-middling-rally-in-mreits-as-rates-drop
Mortgage REITs Are Starting to Look Very Compelling
http://www.fool.com/investing/general/2014/01/02/the-mortgage-reits-are-starting-to-look-very-compe.aspx
Sentiment is changing. The bulls are taking over now!
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Bimini Capital Management, Inc. 3305 Flamingo Drive Vero Beach, FL 32963
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Shares outstanding Class A 10,393,000 Shares outstanding class B 31,938 Shares outstandind class C 31,938 Institutuional ownership 2.41% Total Revenue (TTM) AS OF 06/30/2012 4.47M Assets 131,000,000 Most recent 10-Q http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=8418350 Liquidity At June 30, 2012, Bimini Capital had cash and cash equivalents of $5.5 million, an equity capital base of $6.1 million and an MBS portfolio of $111.9 million. The Company generated cash flows of $11.9 million from principal and interest payments on its MBS portfolio and $2.2 million from retained interests in securitizations during the six months ended June 30, 2012. Material losses incurred by the Company in 2006 and 2007 attributable to the former mortgage origination operations of MortCo have significantly reduced Bimini Capital's equity capital base and the size of its MBS portfolio when compared to pre-2006 levels. Ongoing litigation costs stemming from both the former operations of MortCo and Bimini Capital itself have caused the Company's overhead to be high in relation to its portfolio size. The smaller capital base makes it difficult to generate sufficient net interest income to cover expenses. In response, beginning in 2007, the Company has taken significant steps to reduce the leverage in its balance sheet, reduce its debt service costs, reduce expenses, settle various litigation matters, and alter its investment strategy for holding MBS securities. In addition, the Company has attempted to raise capital in Orchid, its wholly-owned subsidiary. During the second quarter of 2011, the Company took steps related to a proposed public offering of common stock by Orchid. However, due to market conditions and economic events beyond the Company's control, the offering was withdrawn. The Company has continued to evaluate capital raising opportunities for Orchid (See Note 14, Subsequent Events, for recent actions). Attracting external capital to Orchid would allow the Company to receive fees for managing the Orchid portfolio, decrease the Company's expenses by allocating certain overhead costs to Orchid, and share in distributions, if any, paid by Orchid to its shareholders. However, if cash resources are, at any time, insufficient to satisfy the Company's liquidity requirements, such as when cash flow from operations are materially negative, the Company may be required to pledge additional assets to meet margin calls, liquidate assets, sell additional debt or equity securities or pursue other financing alternatives. |
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