No. of Recommendations: 3
I am pleased with TMA selling the mortgage securities and issuing preferred, even though it is dilutive to my equity position. It must have been a very difficult decision to sell a AAA portfolio at a substantial loss when the probability is that in several months it will be worth more than what it is worth now because I believe that the lemmings will begin to understand that it is money good. Raising capital with the preferred will help with TMA liquidity and getting back into a market that is now mispriced in favor of the issuer. Both of these moves seem to me to be evidence of a sophisticated, competent and adept management. When s**t happens many managements hide their heads in the sand and wring their hands. TMA management has been proactive and decided to move forward. They have taken decisive action. Only time will tell if they are right or wrong, however I am even happier to have my long position of 5,000 shares at an average cost of $14.98 than I was ten days ago.
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