Two Harbors Investment Corp (TWO)

[kentonmag1]

The next earnings call is 8th May for the 1st quarter of this year. I think the share price could go down to below $11 and I'm hoping maybe $10.50 as the shorts push the price down. I think it could trade in a narrow range between now and then.
The dividend was fairly constant for 2 years at 40 cents each quarter but after last years 30 million new shares came on stream the dividends went to 36c, and the current divi is for 32c. There was a 55c dividend inbetween but this was a special dividend tied to their holdings in SBY and shouldn't be part of the calculation for future divi's going forward.
The earnings of the Company are increasing all the time but now the divi has to be spread around 57 million more shares then the EPS drops and so does the cash pool also has to be spread out for dividend payouts per share. It's to early for the investment to start showing much of a return during this quarter.
My hope is they will get this new money working for them during the 2nd quarter and if so the chances are they could then begin to raise the dividend again which will get people back on board.