Chimera Shares Jumped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of dividend powerhouse Chimera Investment (NYS: CIM) were flying higher today, gaining as much as 10% in intraday trading after releasing an investor-soothing filing.

So what: After yesterday's close, Chimera issued a press release giving more detail around its delayed quarterly filing. For those who missed it, last week the company said it would delay its 10-Q filing, noting: "Chimera Investment Corporation ... in conjunction with the review by its outside independent accounting firm, is completing an analysis of the application under generally accepted accounting principles (GAAP) of the appropriate Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) to other-than-temporary impairments (OTTI)."

Potentially scary stuff, right? Well, maybe not so much. Today, the company said that the results of the review will likely result in "immaterial adjustments" that will be noncash in nature. It also revealed that third-quarter economic book value ended at $3.01, while taxable income for the quarter was $0.13.

Now what: What more is there to say except that this is good news for investors? Obviously, they will want to stay tuned for the close of the investigation and eventual filing of Chimera's quarterly report. But there seems to be good reason for investors to be breathing a bit easier today.

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At the time this article was published The Motley Fool owns shares of Chimera Investment. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.

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