In Q2 AGNC paid 37M in managment fees, a 4M increase vs Q1. MTGE will do the same. Big revenue increases for ACAS based upon AGNC and MTGE Q1 secondaries. This will certainly propel NOI and significantly increase ACAM's valuation. Annualized, this could be better than 20M in recurring revenue. How much more would you value a business that started paying you 20M more a year?
I cannot remember when this stock sold off like it has in the last couple of sessions prior to Earnings release. Obviously the Market has jitters about the company's earnings. I also believe if AGNC's earnings were such a big boost for ACAS then why no action in after hours? It doesn't sound to me like the company's earnings are going to be anything to write home about. Just my humble opinion.
The AGNC report has been very nicely received in the after-market: at 4:34 AGNC was up $1.31 and at 4:37 MTGE was up $0.92 (MTGE reports tomorrow). The fact that the world is not ending has been nicely received. This news is extremely good for ACAS. However, I would not annualize the results for ACAS. Additional share sales for AGNC and MTGE will not be coming for awhile--until the market price shows a nice premium above book value. This is likely to take some time.