Western Asset Mortgage Capital Corp. (WMC)

[skizimus]

Brought to you by Franklin Templeton Investments

[soflodiver]

What was the net effect of the repurchase of the convertible senior unsecured notes on the GAAP net income and the core earnings last quarter and the expected effect for future quarters?

Repurchased $6.7 million in aggregate principal amount of our convertible senior unsecured notes at an average discount of 6.3% to par value.

[naturalborninvestor]

Q1 2021 out - making good progress

FIRST QUARTER 2021 FINANCIAL HIGHLIGHTS

During the first quarter we continued strengthening our balance sheet by reducing debt and leverage, while improving liquidity and shareholders' equity. First quarter financial results and highlights included the following:

GAAP book value per share was $4.27 at March 31, 2021, an increase of 1.7% from $4.20 at December 31, 2020.

Economic book value(2) per share of $4.02 at March 31, 2021.

GAAP net income of $8.0 million, or $0.13 per basic and diluted share.

Core earnings(1) of $6.1 million, or $0.10 per basic and diluted share.

Economic return on GAAP book value(3) was 3.1% for the quarter.

2.19% annualized net interest margin (1)(4)(5) on our investment portfolio.

Recourse leverage was 2.0x at March 31, 2021.

On March 23, 2021, we declared a first quarter common dividend of $0.06 per share.

Repurchased $6.7 million in aggregate principal amount of our convertible senior unsecured notes at an average discount of 6.3% to par value.

[soflodiver]

I see this as an opportunity to add more.

http://shortvolumes.com/?t=WMC

[odega]

Mfa is .075

[JackAskSlap]

Money In the Bank come Monday ..

[JackAskSlap]

Filled 7000 so far going to add heavy before Monday ..

[odega]

.06 dividend... April 26th... now all three of my REIT stocks paying dividends... I ain’t mad...

[soflodiver]

No REIT I track has increased their dividend so far this quarter. WMC does appear to have potential to increase theirs a penny or more but I am not expecting it this quarter. However, if the current quarter is as good as the last was for them, I would expect a dividend increase then.

Currently, the only REIT I have been holding recently other than WMC is NLY and I play the quarterly swings with it because more can be made on each quarterly swing than the annual dividend payout.

[naturalborninvestor]

Both MFA and TWO reported flat Q1 dividends. Personally, I'd be OK if divs stay at $0.06 this quarter. Did any Reit increase dividends?

[odega]

Just waiting abiding my time as it gets back up towards $10.

[odega]

Loading up the low float boat i’ve got me 28,500 now just bought me that 500 just average up now every payday a little bit more I just watered as it gets back up to 10 $11...

[soflodiver]

I was able to buy enough shares near the bottom of the dip yesterday to meet my plan so will only buy more before dividend if there is a large dip.

[odega]

Accumulating Looking forward to it while were in a low-volume phase before people start to learn of this one.

[Abominari]

This looks like a good stock to have.

[soflodiver]

The dividend should head back up again also.

[odega]

Yeah I’ve been waiting for somebody to post I’ve been here a while frontloading... this was a $10 stock up until last March when the virus was announced Drop like a maker I was loving it...slowly heading back up...

[JcOg323]

This board is quiet...
Lots of potential upside here. They said second quarter they will be issuing loans again.

[FRED8]

March 3rd, I believe.

$WMC

[Edward Munch]

$WMC

Earnings report next month.

[FRED8]

W MC Hammer.

$WMC

[FRED8]

Today's about the date to own by Ex-div. Date (Oct.1). Should rise...

$WMC

[bige777]

Why so quiet on this board?

[Sean Portman]

It’s waiting on market for direction. This week will get very interesting with faang news and fed and banks reporting. Betting amazon is good, but labor will be up huge since they had to hire, where eBay and many others didn’t have to do squat. But we don’t control direct, we just buy into it. So we will see what happens by Friday. We have a 50% retrace so far since lows on spider since lows.

[Koopa Troopa]

Hey sorry for the delay, but I did look briefly at the 8K. Full of mortgage loan jargon and not meant for the common man to understand! Looked to me like some loan restructuring on assets...

I'll admit that rather than attempt to figure it out, I decided I'd forward it to a mortgage lending buddy, but then I forgot! Looks like the SP doesn't mind it.

Pretty wild how WMC volume has dried up and price has stabilized... wonder if it will stay that way??

$WMC$

[Sean Portman]

Any idea what the 8k means?

[Koopa Troopa]

Well this unexplained rise in SP is bittersweet for me. ALMOST sold half right before the latest collapse (opened below my order) but since it didn't fill, I never doubled down again. My lowest purchase was $2.63. It's now up about 150% from the $1.37 low! God, I'd be sitting pretty if I succeed in that trade (: oh well.

Went ahead and sold a few $3.35 just now to preserve capital and actually be in a position to buy if it drops significantly again. Good luck to you if you're scratching your head on this one as well.

$WMC$

[Koopa Troopa]

Unfortunately yes, I am not going to sell this low. Too stubborn.

I must admit, I ALMOST executed a tactful trade. After the divvy was suspended, I placed a good sized sell at $3.80. The stock had closed Friday at about $4.02. I thought I had a good shot at $3.80. Monday open and day high was $3.72!! Missed by pennies. If that trade had executed, it would have preserved about $5K compared to the current SP...

Honestly, when plans like that don't quite work, all you can do is stomach it and move on. As I'm sure you know :)

Looking like sub-$2 is likely, but we all know this WILL recover. Questions are how low will it go first, and how long will the recovery take. Same gamble taking place all over the market. Best of luck to you and all.

$WMC$

[02opida]

still Holding

[Koopa Troopa]

Dude... not what I wanted to hear!! Thanks for sharing. If it holds up Monday I might dump some of my cheaper shares, but I'm sure either way we look back a year from now and recognize what a great deal this stock is right now. Just might get dollars to work harder for us elsewhere near- term... enjoy the weekend.

[Sean Portman]

News isn’t good. No divi. looks like a 3 month wait to see what happens :(

[Koopa Troopa]

Yeah man, I feel like my luck here comes in waves. Sometimes I can't win, others I can't lose... as long as the wins outnumber the losses and the lights stay on I guess it is all good.

I might say take a look at PAC*V as far as a recommendation. Seems to be flying under the radar but should be putting out 10K including recent acquisition any day now (or NT and 2 week waiting game...).

I am too damn stubborn, I bought another 1000 shares here today. Got my average under 4 bucks (:

$WMC$

[Sean Portman]

That sucks that you didn’t get in. It’s up big again so far. I think un/eq could do the same, but that’s more of a gamble. But yes. Hoping news of divi helps out here. Could use it myself :). OR/C comfirmed theirs the other day.

[Koopa Troopa]

Got it, I had my dates confused and was thinking of payout date. I'd say let's not get nervous unless the end of the month comes and goes...

At least form 4s are still posting...

$WMC$

[Koopa Troopa]

You sure it isn't April 24th? I'll dig in and check shortly myself.

By the way, I checked out what you were posting on, did some DD and decided TPT* was worth a starter... yesterday pre bell I bid 0008... day low shown 0007 and no fill!!! Man it would have been nice to have that damn thing break up all the RED.
Oh well.

$WMC$

[Sean Portman]

Here is the 24th come and gone and still no divi declaration

[Sean Portman]

I try to be good :). I think buying low is always good, and if you’re not a daily trader, or want to swap shares or trade them, adding when it’s low and increasing your position is very smart. Of course there’s no guarantees that there won’t be companies that go belly up from this craziness, but that can’t really be helpedz But it seems like many stocks I’ve looked at on nyse or Nasdaq don’t really have a huge volume spike. A bit of course, but not a whole lot. As in many of the shareholders are pressing the sell button and are running away. This is a comparison to the volume before the corona virus and I don’t have numbers, just things I’ve seen and just stood out.
(So it still could be that the same amount of volume could drop the market as much because of the lack of willingness to buy so having to sell at a cheaper price and just a domino effect.)
Let’s add betting that it’s going to fall or shorting or borrowing shares with a promise to return and you’re holding as the market goes lower so you can buy them back at a cheaper price and return them to the original holder and keep the money from the spread. So if someone borrows 10000 shares at 10.50 or a there about price where there could be a selling of 10000shares, which might be a spread down to let’s say 10.25. Now you have in your account somewhere between 125-150k dollars. Not like you can take it and run to the Bahamas. It’s all regulated and controlled money. You’d see a selling of 10000 shares pushing price down just like if someone had a market buy order. Now you’re betting and hoping it won’t go up cause you’d have to buy higher and add your own cash. You’re in this trade already for 125-150k dollars. Let’s say hundreds do this because we all wonder what if it goes down. Well it is now, per say. The next trade might be someone selling shares or it could be another person shorting or borrowing shares. By the end of the day, you start seeing the price start to rise after falling because usually around 2:30ish EST is a good time to start looking for 10000shares to buy at a let’s say 8.25 price. Weather your buying on the ask or bid. You just spent about $82500 buying back with your cash and you electronically return to owner and keep the remainder. There’s fees involved and it’s obviously a little more involved than that, but that’s basically it. The fact that market so called “recovers” huge percentage gain in the last 1-2 hours of market trading shows this pattern. The problem isn’t when one does it, the problem is when billion dollar hedge funds do it when a lot of the market is already trading at a bloated inflated per share price so. As in share to dollar value as an example, aa/pl is trading or was trading last I looked at like 20 times the actual share value. Why would you buy it? At that price? Because you had a good chance of being able to sell it even higher to the next buy and profit because it’s a very liquid market. Let’s raise the stakes just a bit and this is just a personal unproven opinion....what happens when a country does it to the USA market? Not trying to make this political, but in my opinion the fact that we had the gain we could lose where many will suffer their gains for the last few years, as a country, we had gains to lose. We had an economy to lose from, we had job growth to lose from. In this case falling from higher is much better than being under and adding losses while already under water. Going further into the virus and oil and China and market crash and politics would really not be worthwhile in this convo, nor really want to publicly, but I’m just going to say, that this market fiasco is hurting but we’re gonna get back up. This will hurt many and maybe even the next generation, but we’re going to prepare the next generation with fixing the potholes we fell in and we’re going to recover. Cause we’re Americans and we’re the hardest working country and therefore it’s earned.

[Koopa Troopa]

Hey thanks for the response. You're a familiar name I've seen around ihub with recollection of you being one of the good ones.

What you are explaining is awful and shouldn't be allowed!! Basically shorters finding a way to capitalize on the fear that is already compounding in the markets. Something I'm not really familiar with despite years of trading stocks. They are making a bad situation worse for the rest of us. One thing I know is I'm not selling ANYTHING while this goes on. But I am slowly liquidating my savings to keep buying the bloodbath. I may need to take a break from that, as it certainly looks like the worst isn't over almost anywhere.

I bet we'll be looking back on this unprecedented situation in a few months in disbelief, after society and the market recover. Certainly a lot to learn about exactly how far the effects of a pandemic can go. Everyone is learning.

Imagine if the mortality rate was higher-- if this disease was an even more serious threat to the health of the general population (i.e. if fear was more in line with reality)... definitely a lesson in how quickly disease can spread, and how easily life can be disrupted!!

You stay safe as well, my friend.

$WMC$

[Sean Portman]

The further you short the market, the more you can buy less and simply change the numbers. Everything market will suffer a bit even here, but this is mostly guys or the options and shorting community to simply fib numbers per say. One of the big hidden secrets of the market corrections. No clue where bottom is until bears turn back to pulls and force the other bears to bull again. Just my 2 cents. Stay safe.

[Koopa Troopa]

In the early days of the market sell off, WMC looked to be a mildly safe investment, being real estate asset backed, dividends, etc... but the bottom appears to have dropped out and is now trading at all time lows... all I can find on it is the CEO has been purchasing shares, latest is 20K shares at about 5$ on Monday. I believe at these levels you can't lose, but where is bottom and why has it spiraled down so far!!

I know this board is pretty much dead, but if anyone is following this, thoughts are welcome...

$WMC$

[k-shyne]

If they have any GOOD news soon then it'll be a BIG increase imo

[02opida]

WMC

[Kylef]

Wmc is next to Move imo...Low Volume though, has to increase.

[02opida]

keep adding too

[02opida]

must agree

[dshade]

still solid amongst peers

[02opida]

WMC ~ GOOD DIVs

[02opida]

good labor day close

[02opida]

Western Asset Mortgage Capital Corporation To Report Fourth Quarter And Year End 2016 Financial Results

[02opida]

Div's are great > WMC