Replies to post #32562 on lowtrade

[lowtrade]

Thanks for the heads up. I just posted my feelings about CIM, it's past, present, and future. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=77603149&txt2find=cim

While the volume today causes some concern about short term institutional holdings. As long as the 15% dividend is continued Price is a reflection. The main concern for shorter term divy traders is the late financials. There has been no increase in the short interest and only the short term AUG 2012 options chain shows increased intrest in the volumes traded @ or below the 2.00 area.

Yes REIT (TWO) has been the up and comer in the industry sector and is also a very good investment. With CIM not straightening out it's filings. My guess is many short term quarterly money managers are switching.

I think this opinion at Motley Fool puts it best;

Moreover, to go higher, Chimera needs to demonstrate its ability to keep its dividend at current levels. After losing half their payout in the past two years, the shares have also lost about half their value. With a near-perfect environment for the stock, Chimera has to prove it can rebound or else investors may never regain confidence in the mortgage REIT.

It's a problem in confidence which may be creating new buying opportunities for new positions, no matter how low the price goes. As long as 15% remains the basis held to dividend ratio. The problem lies with the ability to lower ones basis if holding before this price slide. While the ROI may be reduced without averaging down.

But again, little guys which can get more then 5% in this environment, should still be happy with a slightly lower return IMO. It's the big money shifting portfolios, not long term dividend players leaving. And even with big money shifting, they are not betting against. Their just moving their money to the next flavor of the day. Seen in the short interest fall with price. Those leaving are not taking new short positions. Just looking for a more reliable Q return. They don't average down, they move to the new performer.



I'll end this with IMO there could be a good swing trade in all this soon. I've just put CIM on my watch list for that. It was just a I bought more and hold. Said it before say it again. Watch for a bounce, when big money portfolios are done shifting. Short term money managers got the jitters with late filings and dividend reduction this Q.
http://www.stockconsultant.com/consultnow/basicplus.cgi?&symbol=CIM

This is not a recommendation to buy, hold, or sell CIM. It's an opinion with explainations. TRADE/Invest at your own risk !