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Sell Granite Point Mortgage Trust (GPMT)

Cleaning up after a corporate action.

music selection:  “Blame Me” — The Pretty Reckless

On 24FEB2014 I purchased 982 (split adjusted) shares of Two Harbors (TWO) for 20.36 a share.  Shares are down 24.61% since that time but I’m up nicely after considering the distributions I have received during the holding period.

On 1NOV2017, TWO issued a special dividend of shares of Granite Point Mortgage Trust (GPMT).  I received 186 shares with a cost basis of 17.83 a share.  Today, I sold those shares for 17.39 each.  I book a 82 dollar short term capital loss on the trade.  I am counting the proceeds as a 3.30 distribution of TWO for purposes of tracking total return and my trailing stop loss.

Granite Point may turn out to be a good investment in its own right but I didn’t like it as an opportunity cost at this time.

Devour your prey raptors!

{ 6 comments… add one }
  • Joe November 8, 2017, 8:20 pm

    Hi King Lizard,
    how often do you update your open positions list as the page has a date in 2015? Great retiring on the amount you had, hard to believe it can be done with such an amount. You are a financial wizard!

    Regards,

    • The Lizard King November 8, 2017, 8:40 pm

      I update the open positions with each closed or opened options or bond position. I’ll make a point of updating the published ‘as of’ date going forward to eliminate confusion.

  • Joe November 9, 2017, 1:02 am

    Thank you! Noticed you invest with the odds in your favor rather then looking for growth stocks to hit home runs with. Smart to put the odds in your favor. What you do in case of a bear market that might happen in the next few years? Do you have an email alert when you post?

    • The Lizard King November 9, 2017, 2:54 pm

      Joe,

      You have it. Don’t swing for the fence if you can make easy money bunting! In a bear market, my approach has less risk that straight stock ownership. I also keep a 40% allocation to fixed income. So far no email list. SOmething I need to work on…

  • Chris B November 9, 2017, 2:26 pm

    Where dividends the original rationale for buying TWO? I ask because my theory is that practically all non-REIT high dividend stocks are essentially companies being wound down. Glad you got out in the black. Most of my dividend pursuits have not been so lucky, even in the REIT space (Check out OHI. Ouch!).

    • The Lizard King November 9, 2017, 2:56 pm

      Dividends was most of the thesis for buying TWO. They are also doing some innovative things in the REIT space such as a mortgage processing business. You have to be careful with high yield. The market is usually using high yield to signal high risk. Some sectors are naturally higher yielding though, usually because of tax reasons. Such as MLP, REIT, and BDC.

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