I feel like lately I’ve been on a high yielding binging spree… First I recommended LINN Energy, and now comes another semi-controversial company who’s been on my radar for a few years but I’ve always feared getting into: Chimera Investment Corporation (NYSE: CIM).
Lets start with a quick introduction…
CIM is a mREIT (mortgage REIT) that’s externally managed by Fixed Income Discount Advisory Company (FIDAC) which is owned by Annaly Capital Management (NYSE:NLY). The whole purpose behind CIM really is to allow NLY to invest in riskier instruments that aren’t guaranteed by government equities or groups like Freddy Mac or Fannie Mae (such as residential mortgage-backed securities, residential mortgage loans, real estate-related securities, etc. rather than physical real estate).
For a few weeks now I’ve been looking into LINN Energy (NASDAQ: LINE), trying to figure out if this double digit yielding company who’s stock took a serious beat a few months ago and hasn’t recovered since. While I’m no expert, it became very evident based on the few reports I got my hands on that this is a name worth getting into.
As general practice, I’d like to lay out the negatives first, because there are always negatives… The stock took a serious hit back in July 2013 after an SEC inquiry regarding LINE’s accounting practices. As a response, LINE Energy filed a S-4/A disclosing some major accounting irregularities around September 2013. Curiously enough, the fact that the SEC was looking into the company caused a serious dip, but the actual disclosure of some irregularities didn’t have as big of an effect. The SEC hasn’t disclosed anything about their investigation as of now. On top of this, LINN Energy announced in February the attempted acquisition of Berry Petroleum (NYSE: BRY) but hasn’t started the merger mainly because the SEC is taking its time with the paperwork of the deal, which is all tied into this investigation.
With Twitters IPO looming around the corner, analysts and financial experts won’t quit referring back and forth to Facebooks IPO and comparing the two companies. Unfortunately, those that make the comparison don’t seem to understand or care that the two companies even at the most basic fundamentals are completely different.
As one of the most expected IPOs of the year, Twitter has been the center of attention in the financial world, and everyone wants to get a piece of the reporting action, including myself apparently. One thing that’s important to note is that I am not a professional reporter, but as someone with a bit of common sense I understand that the media loves stirring things up, making comparisons without real sense beyond trying to attracts peoples curiosity, since after all, the circus around the Facebook IPO can and will be used for years to attempt to gain ratings. But the bottom line (from a Computer Scientist and technology expert) is that comparing Facebook to Twitter is the same as comparing apples to oranges.
Gol Linhas Aereas, or Gol Air Lines (NYSE: GOL) in English is the largest low-cost and low-fare airline in Latin America which operates flights to South America, the Caribbean and the US. Lately, GOL has been experiencing losses mainly due to landing fees in Brazil and fuel costs. So why am I predicting a 50% profit on the current price ($3.75)?
Gol’s Price History
Who in their right minds thought they should compete against Intel (INTC)? Advanced Micro Devices(AMD) did. While their stock dropped almost 65% in the past year, ever since end of November 2012, the stock finally started looking up, climbing slowly and steadily.
While your first thought might be “they’re on the rise, not the best time to buy” I believe that’s not the right train of thought. AMD currently at $2.59 and been climbing relatively well (Chart below) in the past couple of months. Even so, they’re still ways away from their 52-week high (8.35).