Exclusive Update
In our report on Chimera Investment Corporation, I noted that one of the things investors must watch concerned a Jan. 15 deadline that the NYSE had imposed on Chimera to file its long overdue 2011 annual report.
According to Chimera's press release announcing the deadline (emphasis added): "In granting the extension, the NYSE noted that it would closely monitor the Company's progress in connection with the milestones and timing for filing the 2011 Form 10-K and that failure to make progress could result in suspension of the Company's listing privileges."
Suffice it to say, this deadline has now passed while investors have yet to see a single financial statement from the elusive mortgage REIT, much less its 2011 annual report. What gives?
On the evening before the deadline, Chimera issued a subsequent press release informing investors that the NYSE had granted it an additional 30-day extension. It now has until Feb. 15 to file the requisite financial statements.
Although shares in the company shot up following the latest announcement, I urge investors to avoid reading anything into the reaction. The bottom line is that besides intermittent updates concerning its estimated book value, the public remains completely in the dark when it comes to Chimera's fiscal health.
To add insult to injury, the company has now pegged its quarterly dividend payout at $0.09 per share and intimated that a portion of last year's payout is "expected to be characterized as a return of capital for federal income tax purposes."
With all of these things in mind, I encourage investors to tread carefully when considering a position in Chimera. Quite simply, an investment in a company that hasn't published its financial statements in over year is nothing more than a blind wager.
To see what else we've dug up on Chimera, read one or both of the following articles:Charting Chimera's Suspicious Year and 6 Reasons to Fear Annaly and Chimera.
