Anyone familiar with Chimera (CIM)

[ugadawg_98]

This is a mortgage REIT that just raised its quarterly dividend to .17. About 16.5% yield at current quote. Got interested when mentioned on another board. Is affiliated with Annaly (NLY). Seems to have loaded up with mortgages during the panic at low prices.

Anyone familiar?

[valuecfa]

How funny. I was pitched this company last week but haven't looked at it yet, and know very little about it. Your mention of it (two in one week) makes me want to learn a bit more.

[ugadawg_98]

There's a writeup on Seeking Alpha as well as the last transcript, but not much else. Does anyone follow it?

[Santayana]

The NLY affiliation is that CIM's assets are externally managed by FIDAC which is wholly owned by NLY.    CIM only has a handful of employees, all of whom work for FIDAC as well.  I've been an investor in NLY for a while and believe that the management there is top notch.  They recognized the problems in the housing market before they hit too hard and reduced their leverage to around 6x. 

 

With CIM I think you are taking a bigger risk on housing recovery as they are buying up all sorts of distressed MBS, while NLY primarily sticks with agency (FNM/FRE) paper.

[bargainman]

Apparently they are a spin off of NLY:

 

http://www.fool.com/investing/small-cap/2009/12/03/3-stocks-ready-to-roar.aspx

 

"Annaly Capital Management (NYSE: NLY) is doing the same thing with Chimera Investment, which it spun off to invest in the many distressed real-estate assets and mortgages that proliferate today."

 

Also looks like insiders were buying at $2.8-3.8 earlier this year.  Reasonably significant amounts as well:

http://finance.yahoo.com/q/it?s=CIM