Does anybody want to opine about the reason(s) for yesterday's 4.4% price drop? I did pick up some more at $6.76/s thinking that the Market overreacted to the quarterly report, but I still don't know what was in the report that caused such a large price decline.
from Bullmarket.com The biggest thing to come out of the Anworth release was its vintage disclosure. While we applaud the firm for this extra layer of information, it doesn't endear us to the stock. With 45% of its portfolio in 2006 and 2007 originated ARMs and about 60% of its ARM portfolio interest only, it is a prime candidate to see a huge spike in prepayments for its portfolio with the GSE buyouts. Thus, while the stock is cheap trading under book value, we are going to fully exit the name and book our profits. As we've said in the past, we'd rather get out too early than too late on these names.