Taking a Deeper Look at the Opportunity in Javelin Mortgage
What I like about Javelin Mortgage is that it pays its dividend monthly, so investors can compound their investments at a greater pace versus a quarterly distribution. I also like that Javelin Mortgage forward declares its dividends over the next three months.
Insiders have been buying
People buy stock for one reason and one reason only: They see value and want to make money. That being said, there have been insiders at Javelin Mortgage who purchased a number of shares since the selloff in the mREITs began. No one is selling. Table 1 has the details of recent insider transactions.
Table 1. Javelin Mortgage Investment Insider Trades in Last Seven Months
|Insider||Number of Shares Purchased||Price Paid||Date Purchased|
|Daniel C. Staton||5,000||$15||6/3/2013|
|Daniel C. Staton||1,200||$15.0758||5/29/2013|
|James R. Mountain||4,000||$15.29||5/29/2013|
|John C. Chrystal||1,000||$14.81||5/29/2013|
|John C. Chrystal||500||$18.828||5/14/2013|
Clearly, insiders believe the company will do well going forward. Prior to this wave of buying, there had been no insider trades since just after the stock had its initial public offering. Insider buying is usually a sign of strength, particularly when there is a wave of purchases close together when there had been none prior. Couple this with the fact that there has been no selling and we have a real bullish setup.