TYVM, gvan29, for educating me. LIke my name indicates I come from biotech and dividends
were a dirty word. Everything was rolled back into the company to maintain an organic
growth of over 25%/ year.

Art

imabiochemist,

Also, In my opinion paying a dividend will not hurt profits much because CIM and NLY can
use leverage to juice up profits. NLY currently uses leverage and I suspect that CIM may
use even more leverage given it's higher risk/return strategy.

I can't wait for a pullback to buy my CIM back. Fortunately I still have a nice little
stake in NLY.

imabiochemist,

CIM and NLY are registered as REITs for tax purposes. In exchange for favorable tax status
they have to pay out 90% of their earnings in dividends.

I wanted to follow up on this. Jim said no more than $17.00. I waited the five days and
put a limit order for $17.00. It got to $17.05 as a low. I kept an eye on it for a
couple of days. Now it is again flirting with $17.00 So I am looking into it some more.
What confuses me if this is a Vultrue Fund that has a huge amount of cash on hand ready to
pounce, why the hell would they declare a dividend? If investors are trusting this fund
to cherry pick the best at the bottom, why are they handing out cash before they really
get started

Booyah!
Art

NLY has been trading between 17 - 17.90. It hasn't even moved after the rate cut... which
it should have.. I sold my NLY at 17.80...

Jim said last night that people would loose money if they paid $17 for CIM today so I sold
all my shares this morning via limit order for $17. Is that wrong or what??? HeHeHe...

Ok. So I got the exact date wrong but I still totally called this!!!

Jim didn't feature CIM today because it closed above $15. Darn! I guess I will just have
to be happy with the nice 4.44% gain I got in CIM today :-)

I win. Cramer not 2 min. ago mentioned the stock I told you to buy NLY... ;)

CIM is a vulture fund set up specifically to profit from the mortgage mess. They raised
$15 per share in cash but the stock was trading below $15 right out of the gate. That
means it's trading below book value!!!

I also own a little NLY who is managing CIM. Jim is a big fan of NLY so chances are good
that he will like CIM although I have never heard him mention it.