Chimera Lives to Fight (Yet Another) Day
Feb 15th 2013 12:27PM
Updated May 15th 2013 5:01PM
Over the past 15 months, Chimera Investment Corp. has failed to file its quarterly and annual financial disclosures with the Securities and Exchange Commission as it continues to work through accounting problems dating back to 2008.
Beyond leaving investors in the dark about its financial position, Chimera's reticence in this regard has drawn the ire of the New York Stock Exchange . As I've discussed before, in September, it gave the mortgage REIT until Jan. 15 of this year to file its 2011 annual report. It then extended that until today, Feb. 15. And, according a press release issued yesterday by Chimera, the NYSE has once again extended the deadline:
The extension granted by the NYSE, which is subject to review by the NYSE on an ongoing basis, provides the Company until March 15, 2013, to file its 2011 Annual Report on Form 10-K with the Securities and Exchange Commission. During the extension period, trading of the Company's shares on the NYSE will remain unaffected. The Company had previously obtained a four-month listing extension until January 15, 2013, and a subsequent extension to February 15, 2013.
Will this be the last? It's hard to say. However, in the same press release, Chimera noted that this most recent 30-day extension is the "final" one.
As readers of my articles on this company know, I've been extremely bearish on Chimera over the past year -- and the same goes for its manager Annaly Capital Management . I've expressed numerous concerns, though the biggest is that Chimera may have gotten itself embroiled in an inextricable accounting mess from which it won't recover.
At the same time, I think it's important to recognize that one big positive sign has emerged. Over the last two weeks, no less than five highly respected investors and investment management companies have staked large positions in Chimera. Among others, the bond giant BlackRock has accumulated 56 million shares, former partner at Goldman Sachs Leon Cooperman has purchased a total of 55 million shares, and Wells Fargo now controls 61 million shares.
What does this mean? It could mean nothing, or it could mean that Chimera isn't in as bad of a position as I thought. I suppose we'll find out in the middle of March. Maybe.
Want to learn more about Chimera?
It's hard to miss the massive double-digit dividend on Chimera Investment, but when investors start to dig in, it's also hard to miss the fact that it's been more than a year since the company has filed audited financials with the SEC. Should you follow the dividend's siren song into Chimera's stock? To help you figure out whether the stock is a buy right now, The Motley Fool has just released a new premium research report on Chimera. Click here now to claim your copy of this must-have investor's resource.
The article Chimera Lives to Fight (Yet Another) Day originally appeared on Fool.com.John Maxfield has no position in any stocks mentioned. The Motley Fool recommends BlackRock, NYSE Euronext, and Wells Fargo. The Motley Fool owns shares of Annaly Capital Management and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. 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 Motley Fool has a disclosure policy.
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