New York Mortgage Trust (NYMT) is nascent once more. After a rocky first quarter, the Company appears to have righted the ship during Q2, relisting on a major exchange (NASDAQ), upping earnings guidance, boosting the dividend, and significantly reducing delinquencies / REOs.
The Company posted a press release earlier today that declared a split-adjusted dividend of $0.16/share, up from the $0.12/share dividend in Q1. While still likely to be a return of capital, the cash flow is certainly there to support the dividend. I would rather see management buyback stock and utilize the available tax losses with the free cash flow, but the dividend payment does give the stock a floor and rewards very patient shareholders.
Most importantly, the Company resolved approximately $4.3 million in REO properties and approximately $4.9 million in loans greater than 60 days delinquent held in securitization trusts. As of June 30, 2008, the Company had 1.18% of loans greater than 60 days delinquent and 0.13% in REO properties as compared to 1.82% and 1.21% as of March 31, 2008, respectively. This kind of performance shows meaningful operating improvement and a continued turnaround.
2 comments:
Do you not see LUM as possibly doing something very similar. The news of late isn't very helpful, but the action plan in motion since Aug/Sept seems to still be on track for an 09 recovery. I see this as a very undervalued company, given its holdings and posture going into this market turmoil.
I believe Luminent will shortly have to declare bankruptcy. The cash flow from its assets is not projected to cover its repo obligations. I would not recommend holding a position in LUMC.OB
Post a Comment