On July 29, 2009 in this blog I wrote about the IPO of PennyMac Mortgage Investment Trust ("PMT") and its rich $20 per share offering price.
I said I liked the company---but not the IPO price. Way too expensive for a mortgage REIT at that particular time. I warned that investors would be buying either dead money or a falling knife.
Well, it's been almost six months. The S&P is ending near it's high for the year. Lots of joy joy joy in the stock market. The floor traders at the NYSE sang "Wait Till the Sun Shines Nellie" with much glee this Christmas.
So, how is PennyMac doing?
As I write this the stock is at $17.34 per share. In its first report to investors since the IPO, the company lost $730,000 or four cents per share.
I still think this is a fine company with capable managers who know what they are doing. I definitely am a buyer for this stock.
But not at $17.34 per share either.
The first quarterly loss for PennyMac as an IPO doesn't concern me either. Normal for new public companies. They actually did make a profit before administrative costs which are normally high for an infant REIT like PMT.
With all the modesty I can muster, with all the restraint I can summon, I just feel like saying this.
I am right once again.
I am tracking PennyMac for my own portfolio and will update you on events as they merit.
Robert J. Abalos, Esq.
