Best Rising Stocks To Invest In Right Now

Best Rising Stocks To Invest In Right Now: Chimera Investment Corporation (CIM)

Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company, through its subsidiaries, invests in residential mortgage-backed securities (RMBS), residential mortgage loans, commercial mortgage loans, real estate-related securities, and other asset classes. Its targeted asset classes include agency or non-agency RMBS; prime, jumbo prime, and Alt-A mortgage loans; first or second lien loans secured by multifamily properties, mixed residential or other commercial properties, retail properties, office properties, or industrial properties; and asset-based securities (ABS), including commercial mortgage-backed securities, debt and equity tranches of collateralized debt obligations, and consumer and non-consumer ABS. The company has elected to be treated as a REIT for federal income tax purposes and would not be subject to income tax, if it distributes at least 90% of its REIT taxable income to its share holders. Chimera Inve stment Corporation was founded in 2007 and is based in New York, New York.

Advisors' Opinion:

• [By Dan Caplinger]

  Berkshire isn't the only company where book value plays an important role. In the mortgage REIT realm, the value of the investment portfolio for a given mortgage REIT reduced by the REIT's outstanding debt, sometimes referred to as net asset value rather than book value, gives valuable information about its relative valuation. Industry leader Annaly Capital (NYSE: NLY  ) currently sports a price-to-book ratio of 0.96 based on its most recently provided figures, reflecting in part investor skepticism about whether the REIT's agency-issued mortgage-backed securities will hold their value once the Federal Reserve stops making extensive bond purchases as part of its quantitative easing program. By contrast, Annaly's non-agency-issued counterpart, Chimera Investment (NYSE: CIM  )! , sports a price-to-book ratio of nearly 1.1, indicating a significant premium to the REIT's stated net asset value that could be due to the fact that the Fed hasn't focused its efforts on the alternative securities that Chimera tends to choose for its portfolio.

• [By Selena Maranjian]

  Appaloosa Management reduced its stake in companies such as Chimera Investment (NYSE: CIM  ) and Valero Energy (NYSE: VLO  ) . Mortgage REIT Chimera Investment recently yielded 10.9%, but it may become less attractive if Congress cancels favorable tax treatment for REITs. Chimera has taken on more risk than many of its brethren, and has had some trouble filing reports on time. Some still like its prospects, though, while others question its hefty management fees.

• [By Dan Caplinger]

  Because of the requirement to pay out the vast majority of their income, REITs often have extremely high dividend payouts. Mortgage REITs ARMOUR Residential (NYSE: ARR  ) and Chimera Investment (NYSE: CIM  ) use leveraged strategies to produce yields well in excess of 10%, while Omega Healthcare (NYSE: OHI  ) and Senior Housing Properties Trust (NYSE: SNH  ) , which specialize in long-term care facilities and other properties catering to older residents, both have yields between 5% and 6%.

source from Top Penny Stocks For 2015:http://www.topstocksforum.com/best-rising-stocks-to-invest-in-right-now.html