Thornburg Mortgage Raises Capital
Thornburg Mortgage (TMA: 0.73 +0.02 +2.82%) today raised $500 Million in a Cumulative Convertible Redeemable Preferred Stock Offering. The preferred shares were priced at $25 with a 10% dividend. The dividend will be the higher of 10% or the quarterly yield on the common stock.
The preferred shares are also convertible to common stock at anytime at a conversion price of $11.50 per common share.
In my opinion they paid a pretty steep price to shore up their capital structure. The holders of these preferred shares will do very well if the company recovers. However, the Thornburg management maintains control of their destiny and the share price is up about 7% today.
I remain an owner of TMA stock and think the company will do well if they are still swimming when the home and mortgage markets start recovering.
Watch List Addition: iShares Emerging Markets Index-EEM
Another sector of spectacular profits over the last 5 years has been emerging markets. The 5 year chart of (EEM: 155.10 +1.95 +1.27%) shows a steady upward trend with only minor pullbacks.
In my lifetime there have been some pretty terrible drops in emerging market prices, but the overall global market seems to make these individual markets less likely to crash and burn. As you see in the chart, any recent pull back has been a buying opportunity.
So I am adding (EEM: 155.10 +1.95 +1.27%) to my Watch List page. The Watch List is a collection of ETFs that cover sectors of the market I am interested in watching for trends. If you think a sector and trend shows promise, you can buy the ETF or search for individual stocks in the sector.
Review: Claymore/SWM Canadian Energy Income Index ETF
When I first read about the Claymore/SWM Canadian Energy Income Index ETF (ENY: 32.28 +0.935 +2.98%) I was very intrigued. I have looked at both energy royalty trusts as a source of excellent income and Canadian oil sands companies as growth opportunities. Read more
A Dash of Insight: Excellent Post
A Dash of Insight: Do Internet and Media Resources Help the Individual Investor?
Exerpt:
Individual investors face significant obstacles. In trading their own accounts they consistently under perform the major averages. Mostly this comes from chasing performance from the prior year, poor market timing (mostly selling bottoms), investing based upon questionable macro theories, and trying for homerun stocks. Most do not realize these issues.
My thoughts today have been the urge to sell out of positions that I believe are good companies because they are in a downward trend. As the market is down across the board, weakness in individual stocks is part of the overall trend, not specific to the specific security.
Watch List Addition: Energy Select Sector SPDR
If you look at the 5 year chart for the Energy Select Sector SPDR (XLE: 88.95 +3.13 +3.65%) you see a 300% gain with very few pull backs. The energy companies have been very profitable as oil prices have gone up and stayed high.
So I will add (XLE: 88.95 +3.13 +3.65%) to my Watch List page and start looking for some stocks to review. It appears we all should have some energy exposure in our portfolios.
Stock Review: Wayside Technology Group
With the recent hot IPO of VMware (VMW: 69.60 -2.48 -3.44%), this is a good time to take a look at Wayside Technology Group (WSTG: 10.11 +0.36 +3.69%). Way side is a very small cap ($66 million market value) software reseller and distributor. They strive to be a value added vendor for higher margins than the competition.
They were VMware’s first distributor and Read more
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