He has a watch list daily of those reaching 52 wk highs and then just claims they are going MUCH HIGHER.....not a bad approach right now but it won't last long-term. Eventually high fliers will adjust back down...remember when he pumped NLY a LONG (not really long) time ago - it has tanked....
Was listening to Crammer while I was making dinner and heard him mention this. 1st time here. Divvies look enticing. Studying it now. Currently own DUK and SE and on a wing and a prayer with DPTR. OUT
For what it's worth, here is my view on mortgage REITs. I used to buy them years back and actually worked at a commercial mREIT. Before the Fed took over the entire mortgage industry, the drill used to be to buy mREITs when rates (e.g the Fed funds rate) began to fall and to sell when rates flattened out. The reason was simple -- as rates fell, mREITs cost of funds would fall, their spread would increase as well as the value of their mortgage holdings (the NAV), which would lead to increased earnings and dividends, which would allow them to issue more stock to buy more mortgages and also increase their leverage. Then rates would start to rise and the process would reverse.
Now, however, the Fed has been buying all the MBS issued (over $1 trillion by March 2010) which has caused the prices to increase. What happens when they stop next March? If they aren't there to buy, who will and what will happen to the price of MBS? The answer is that the prices will have to decline, and with that decline will come a decrease in mREIT's NAV. Finally, eventually the Fed will have to raise rates although it may be some time, but that move will be anticipated by the market.
Many of the mREITs had great runs and paid great yields (over 20%), but many issued more shares in the summer. Their stock charts look like they started to roll over.
Bottomline: tread carefully. mREIT stocks don't grow to the sky.
Cramer is no longer a hedge fund manager, but he still has plenty of friends that are. I'm really surprised the SEC has never really investigated to see if there is any correlation between his pumps and the holdings of some of his buddies.