Orchid Island Capital Inc. (ORC)

[F150EcoBeast]

This stock seems interesting to me. Hmmmm. Im gonna do some digging.

[maverick one]

1-5 LOL predictable.

[JMCK6193]

From .045 to .032 dividend in Sept.

[bar1080]

And the more ORC falls, the higher the dividend yield... for awhile. Investors can go broke thinking in those terms.

[James salmon]

Still paying well above 10% dividend.

[ErnieBilco]

Yeahhhh and they are cutting the divi down to a pre-split .032 instead of the current .045

[Scotttrader80]

CORRECTING and REPLACING Orchid Island Capital Announces One-for-five Reverse Stock Split, August 2022 Monthly Dividend and July 31, 2022 RMBS Portfolio Characteristics

One-for-five reverse stock split of the outstanding shares of Common Stock

August 2022 Monthly Dividend of $0.16 Per Share of Common Stock

RMBS Portfolio Characteristics as of July 31, 2022

Next Dividend Announcement Expected September 12, 2022

The shares are expected to begin trading on a split-adjusted basis at market open on August 31, 2022.

reads like they're going quarterly

[leftovers]

Rut Row ---- Orchid Island Capital (NYSE:ORC) on Wednesday announced a 1-for-5 reverse stock split, effective at ~5 pm ET on Aug. 30.

[ErnieBilco]

Fantastic improvement - loss dropped more than 60% from Q1.

No wonder it continues to rise

And work on those math skills - the annual divi is 54 cents per share and it continues month after month - not bad for a $3 stock.

EDIT: Oh I see you wanted to make it look worse than it is so you decided to only use the 3 months of divi while disregarding the other 9 - Clever as ever.

[OTC_Hatter]

Company reported a net loss of $60.1 Million for the three month period ending June 30, 2022, compared a net loss of $16.9 million for the three months ending June 30, 2021...

Really... Who in the Hell would buy this? Going the wrong way! Just wait till the housing market crashes... The dividend already decreased 47 cents to 13 5 cents. Soon investors will have to pay the company dividends with all these losses!!

Damn, im staying away from this

[OTC_Hatter]

Orchard Securities – Investor Alert
Did you suffer investment losses with Orchard Securities (CRD# 133378) (SEC# 8-66719)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Orchard Securities. If you suffered losses investing with Orchard Securities, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.

As of April 4, 2020, Orchard Securities’s FINRA BrokerCheck Report contains the following:
Main Office Location
365 GARDEN GROVE LANE
SUITE 100
PLEASANT GROVE, UT 84062
USA

Mailing Address
365 GARDEN GROVE LANE
SUITE 100
PLEASANT GROVE, UT 84062
USA

Business Telephone Number
801-316-4301

Orchard Securities’s Direct Owners and Executive Officers
FAR VISIONS, LLC, MEMBER
NORTH CANYON ENTERPRISES, LLC, MEMBER
TOTTENHAM INVESTMENTS, LLC, MEMBER
TRIPLE CROWN SECURITES, LLC, MEMBER
BADALAMENTI, CHARLES RICHARD (CRD#:2065038), FINOP
BRADBURN, KEVIN CHRISTOPHER (CRD#:2718206), MANAGER, CHIEF EXECUTIVE OFFICER
GARRETT, TAYLOR WESTON (CRD#:4829547), PRESIDENT
HART, ADRIENNE YOST (CRD#:1510179), CHIEF COMPLIANCE OFFICER

FINRA requires brokerage firms to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. Brokerage firms that fail to conduct adequate due diligence or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.

If you suffered losses investing with Orchard Securities and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.

This information is all publicly available and is being provided to you by Galvin Legal, PLLC.

Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.

Formerly Known As, Aliases, and Affiliates
JOSEPH CAMERON, JOSEPH CAMERON LLC, JOSEPH CAMERON, LLC, JOSEPH CAMERON, JOSEPH CAMERON LLC, JOSEPH CAMERON, LLC

https://www.galvinlegal.com/orchard-securities-investor-alert

[OTC_Hatter]

On April 28th, 2022 Orchid Island Capital reported Q1 results. The company reported a Q1 net loss of $148.7 million.

[Scotttrader80]

Possible, what was the percentage in the $2.80's. Those puppies were juicy

[bar1080]

Wow, ORC off about 40% since Jan 1, 2021. Can that be right?

[Scotttrader80]

These folks like it too

https://stockinvest.us/stock/ORC

[Scotttrader80]

Those $2.80's were juicy. I scooped up a bunch of them.

[bar1080]

"Mortgage REIT Carnage"

"News on Q2 2022? Orchid Island Capital (ORC) announced a large chunk of book value was lost. It dropped from $3.34 to $2.87. That’s down about 14% in a quarter. Impressed? Me neither. Of course, if you were holding onto shares of ORC, you must’ve ignored all the times we told investors to simply get out." [much more...]

https://seekingalpha.com/article/4523481-mortgage-reit-carnage

[bobroo]

Bobroo also gives it a Hold rating.

As in, hold shares!

[Scotttrader80]

ORC has a set pattern like most monthlies, learn it and play it, you can bank multiples of their dividend

you can discuss the other over here

https://investorshub.advfn.com/Daves-Dividends-Payers-22057

[DawgTrading]

Ive always liked DNP,

ORC is tough to gauge but it pays out.

[Scotttrader80]

JMP Securities analyst Mikhail Goberman reiterated a Hold rating on Orchid Island Capital (ORC – Research Report) today. The company's shares closed last Thursday at $2.93. Orchid Island Capital has an analyst consensus of Hold

[Scotttrader80]

Nice dip ORC, any more or should I load up on this one

[gmoney909]

I like that idea

[ErnieBilco]

Excellent point - only use what you can afford to possibly lose.

[MMAS]

I was Taught and Learned quickly early on......

NEVER EVER EVER Take a RISK (Even if close to Zero) with the EQUITY of your home in Any investment. Use any other money but Never take a risk with your equity. That is your home.


My 2 cents if you care to.hear it.


Good luck

I am strong believer in ORC but would never do that or any other stock.

[BearGator56]

I would divide up that 100K amongst several dividend payers

This.

Examples: MAIN, GAIN, STAG. All are monthly payers. GAIN pays out 2 special divis a year in June/December, effectively giving 14 payouts per year.

There are definitely tons of options. I also like utilities like SO, DUK. Stock prices are higher but they are solid with captive customers and stock prices don't fluctuate too much.

Check out Dave's Dividend Payers group on iHub for some ideas as well.

[bobroo]

In addition to doing the math to figure how much you'd profit, you need to do the math to figure where the break even is. And, here is the important part; know at the very beginning you might need to bail out if it gets to the break even level-- and accept all the consequences.

I am very bullish on ORC. I am a believer. Even still, I would divide up that 100K amongst several dividend payers; ORC just being an outlier that pays the most.

[Scotttrader80]

Gotta know the authorized before claiming anything of a split, lololol too funny

[AlwaysRed]

Except for the fact that 5 years ago this was a 10 dollar stock.

They have decreased the divvy twice in the last year.

They have to dilute to pay the divvy.

There will be more divvy reductions and a split coming in ORC.

There are other stocks that are monthly divvy payers that are far more stable than ORC.

Great idea, wrong stock......

[ErnieBilco]

$100K buying in at $3.08 would yield 32467 shares times .045 would yield

1461.01 per month

17532.18 per year

Assuming the dividend stays the same the $100K would be paid off in 5.7 years.

How safe do you feel the dividend is on a $3 stock?

[slb5150]

Sounds very possible to me...think a friend of mine is doing something similar to this.

[Early_Retirement_2]

Drunk Thinking out loud. If I have $100k in equity in my home, can I take out a loan and use it to buy shares here. Use the dividend to make the monthly payments. Once paid off I can keep collecting the dividend or cash out Whatever it is worth.

[leftovers]

Orchid Island Capital GAAP EPS of -$0.84 misses by $0.51, revenue of $39.2M beats by $3.31M

[bar1080]

"ORC scheduled to announce Q1 earnings on April 28th, after market close."

I can't imagine it will be good.

https://seekingalpha.com/news/3828234-orchid-island-capital-q1-2022-earnings-preview

[bobroo]

So what if their total debt is higher than their book value???


I am confident our dividends will continue consistently for many, many years to come.

[bar1080]

This shows much of the problem: (in a word, "Leverage")
https://www.discoverci.com/companies/ORC/leverage-ratio

[Porterhouse10]

Ouch

[bar1080]

Those mortgage backed securities have likely dropped even more since March 31. .

"ORC's estimated book value per share as of Mar. 31 was $3.34."

[leftovers]

Orchid Island Capital (NYSE:ORC) on Wednesday said it expects to report Q1

EPS of -$0.84, which includes $1.04/share of net realized and unrealized losses on RMBS and derivative instruments.

ORC's estimated book value per share as of Mar. 31 was $3.34.

The firm's estimated total return on equity for Q1 was -19.5%.

[bar1080]

"Why Mortgage REITs Are Getting Pounded"

"Summary

* MBS values were slaughtered.

* Rates moved too quickly. The mREITs hedge, but hedging isn't perfect.

* Even with hedges in place, leveraged losses are bad.

* The yield curve inverted. That's not good, but the shape of the yield curve matters less than most investors think."

Click link below to read full SA article:
https://seekingalpha.com/article/4500193-why-mortgage-reits-are-getting-pounded

[Porterhouse10]

Chasing Yield never works, poof goes your Principle, complete trash

[bar1080]

ORC's not a REIT; it's a mREIT or Mortgage REIT. It had 6 billion in mostly short term debt last I looked, and borrowing costs are soaring.

I don't own ORC or anything like it. I only own the bluest blue chips with well covered payouts.

I'd worry too that payouts of investments that compete with mREITs, like federally insured bank CDs, are rising.

[Eric_sfo]

Well if hindsight is 20/20 this REIT stock is predictable, continues to decline. So what is the upside of this stock of any?

I don’t have a lot in so might as well take the loss and move on finally.

Thanks for replies.

[bar1080]

ORC's big problem in an nutshell: ORC has tons of debt and interest rates are soaring. Hope no one is relying on this for retirement funding.

[Scotttrader80]

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=168377077

[bar1080]

A $3 price is a red flag for anyone with investing experience and wealth. Tells you the kind of investor ORC's targeting.

Notice how quality stocks are getting more and more expensive in recent years... with many trading over $1,000 before splitting down to about $70-$150.

No quality company wants to have a $3 stock price.

[Scotttrader80]

Gotta know the A/S before any RS, know it?

[bar1080]

If you've been in this Bowser since '17, you need to figure how much you could have profited in other stocks... such as a dum-dum S&P 500 index fund, like what I have tons of money in. Note the S&P also pays dividends. And usually they grow with time.

Counting divs, SPY has far more than doubled since 2017.

[bar1080]

EdwardJones Report:"We don't recommend mortgage REITs for individual investors."

What can go wrong?

"• Mortgage REITs borrow more to fund their operations than
equity REITs - Mortgage REITs borrow up to 85% of the fair
market value of assets, while equity REIT levels are usually in
the 25%-50% range.

• Mortgage REITs can be vulnerable to rising interest rates
- Mortgage REIT profits and dividends are typically reduced as
interest rates rise.

• Mortgage REIT dividends have been unpredictable over the
past five years – The five-largest residential mortgage REITs
(by market capitalization) have raised their common dividends
6 times over the last five years, but have also cut their common
dividends on 15 other occasions.

• Most mortgage REITs have consistently issued significant
amounts of new common shares to fund their business
activities - New common stock issuance typically results in
ownership dilution for stockholders."

Read the full report:
https://www.edwardjones.com/images/mortgage-reits-high-yield-but-high-risk.pdf

[Eric_sfo]

Someone much smarter than me explain to me why the people in charge are still in charge of this company. You can blame Biden, covid, rate hikes, etc all you want but as “bar1080” points out its been bleeding for a while. If you invested when Mr Cauley came on in 2010 you would be down around 8% with reinvesting dividend’s, and if you didn’t you’d be sitting on an 80% loss.

I got in 2017 and was just too stupid to get out and instead averaged down, now sitting at $7.27 it might be finally time to move on and take the loss because I see the $2s coming and a reverse split will kill it because it’ll be back down to sub $5 surely again.

So I ask again how is management still managing this thing. Sort of rhetorical but if someone has an answer please share.