In a rare midday press release, Deerfield Capital (DFR) disclosed some preliminary results for the quarter that were well above Street expectations, particularly the expected book value of $3.00 - $3.50, 3.5x yesterday's closing stock price. The news that book value is still above $3/share and that the Company's liquidity profile has improved sent Deerfield shares soaring, up some 56% at last check.
Deerfield declined to declare a dividend for the quarter, but did acknowledge its $7.6 million 2007 taxable income spillover. As I've discussed before, Deerfield is exploring "alternative organizational structures...as well as other strategic alternatives in order to maximize value for DFR shareholders." For now, however, the Company has satisfied the REIT asset and income tests for the first quarter and remains compliant. The spillover dividend would not have to be declared until September 15, 2008, so Deerfield has a bit more time to mull over its options.
Deerfield declined to declare a dividend for the quarter, but did acknowledge its $7.6 million 2007 taxable income spillover. As I've discussed before, Deerfield is exploring "alternative organizational structures...as well as other strategic alternatives in order to maximize value for DFR shareholders." For now, however, the Company has satisfied the REIT asset and income tests for the first quarter and remains compliant. The spillover dividend would not have to be declared until September 15, 2008, so Deerfield has a bit more time to mull over its options.
5 comments:
Would you consider DFR a "buy" given this disclosure?
No, I don't find Deerfield to be a buy here. The company still remains exposed to margin calls on its repurchase agreements, and the lack of visibility on future dividend payments is troubling. I would be leaning more toward Crystal River Capital (CRZ) or Newcastle Investment (NCT) if I wanted diversified REIT exposure.
I am surprised you like NCT given its premium to book and relatively low dividend yield vs competitors (CMO, for example)
The most pressing free lunch that a homebuyer got from this pocket money weight mortgage finance is the reality that they are pronto offered numerous choices.
Oes Tsetnoc one of the ways in which we can learn seo besides Mengembalikan Jati Diri Bangsa. By participating in the Oes Tsetnoc or Mengembalikan Jati Diri Bangsa we can improve our seo skills. To find more information about Oest Tsetnoc please visit my Oes Tsetnoc pages. And to find more information about Mengembalikan Jati Diri Bangsa please visit my Mengembalikan Jati Diri Bangsa pages. Thank you So much.
Oes Tsetnoc | Semangat Mengembalikan Jati Diri Bangsa
Post a Comment