With half of 2012 in the record books, it's important to take a look at whether the stocks that interest you can live up to their full potential. By making sure you know about a company's future plans and possible challenges, you can make a better decision about whether it's a smart investment for your portfolio.
Today, let's take a look at Chimera Investment
Stats on Chimera Investment
|Average Stock Price Target||$2.69|
|2012 EPS Estimate||$0.45|
|2012 Sales Growth Estimate||(13.9%)|
|Estimated 5-Year Annualized Growth||1.7%|
|CAPS Rating (out of 5)||****|
Source: Yahoo! Finance.
How will Chimera Investment do the rest of the year?
From one perspective, there couldn't be a better economic environment for Chimera. The economy is sluggish enough that the Federal Reserve is reluctant to hint at short-term interest rate hikes anytime in the next couple years, giving not only Chimera but also agency-focused American Capital Agency
But Chimera may not see its stock go anywhere until it gets its financial reporting in order. If the company doesn't file its second-quarter report on time, it would mark the third straight report for which it's late. Although the company is trying to assure investors that nothing's amiss, too many accounting-related scandals have hit other companies for shareholders to put up with a lack of reporting much longer.
Moreover, to go higher, Chimera needs to demonstrate its ability to keep its dividend at current levels. After losing half their payout in the past two years, the shares have also lost about half their value. With a near-perfect environment for the stock, Chimera has to prove it can rebound or else investors may never regain confidence in the mortgage REIT.
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Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. The Motley Fool owns shares of Annaly Capital. Motley Fool newsletter services have recommended buying shares of Annaly Capital. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.