Thornburg Mortgage - Mid Quarter Conference Call
Regular readers know I have tried to be a chronicler of Thornburg’s (TMA: 0.79 0.00 0.00%) recent market meltdown. I have also been a buyer of the stock and tried to put a balanced but positive spin on the future prospects of the company. I have owned stock in the company for several years and have continued to be impressed by the knowledge and quality of the management team. The recent credit crisis in the commercial paper market, precipitated by the crisis in the subprime mortgage arena has led to a crisis in confidence in the investing community towards Thornburg.
They have announced a mid quarter conference call for Wednesday, August 12 at 10:30 eastern time. I will be listening with rapt attention for results/answers in these areas:
- Resumption and estimated volume of the business of originating mortgages.
- Current availability of borrowed funds to fund the regrowth of the portfolio and at what rates?
- Affects of shareholder lawsuits on the company.
- Future dividends and dividend policy.
I plan on standing pat on my positions until I listen to the call on Wednesday. At the money option premiums are quite pricey (IV around 75) for those that may be tempted to take a position one way or the other prior to the conference call.
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Thornburg board will meet in October and decide about the dividend which will surely be cut. That will precipitate an unjustified sell-off. I plan to get out before then.