Thornburg Mortgage Stock Price Rose 310%

I am not sure exactly what happened but the shares of Thornburg Mortgage (TMA) jumped 310% yesterday. And this was on a day when the rest of the market was falling by 6-10%. I could find no news on the reason for the jump but I will take a guess.

Thornburg has been having problems with creditors wanting to make margin calls on held securities even though an agreement had been reached stopping all margin calls until March 2009. These issues had been preventing TMA from completing the stipulations for the new funding agreement that will allow them to restart their lending business and get creditors off of their backs. I would guess that these issues have been resolved and Thornburg can go forward with their new funding plan.

About 6 weeks ago I wrote an article on the fall and possible recovery of Thornburg Mortgage. At that time I stated the company would survive and might even worth a $1 a share from the at that time 25¢. At this point in time, the market agrees.

I own very few shares of TMA, having sold most of my position when the stock was still in the mid $20s. I have mainly a sentimental hope the company survives and thrives. I believe they were primarily victims of the recent financial crisis and not among the greedy bastards who set the whole thing up.

Note: I have a long position in TMA.

Posted in Categories: Contributor, External Research, Financial, Stocks.

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