Here's why the move today......NYSE: CYS) reported its first quarter results on April 17 with an earnings beat. The company reported EPS of $0.32, $0.02 ahead of the consensus mean expectations. CYS Investments is a pure-play mortgage REIT since it invests exclusively in Agency mortgage backed securities. Therefore, the trends visible in its first quarter performance could be seen in the results of other pure-play mortgage RIETs including American Capital Agency (NASDAQ: AGNC), Annaly Capital Management (NYSE: NLY) and ARMOUR Residential (NYSE: ARR).
Not so sure it is appropriate to call ARR a turd, on the other hand maybe. First off if you compare all mreits, ARR is not the worst, nor the best. So a turd? Secondly, ARR reacted to Qualitative easing policies. A turd?
When there are mathematical reasons why a financial stock reacts / is correlated to monetary policy it isn't really fair to call it a turd. I mean, it was supposed to react according to financial math.
So, this isn't really a turd if you accumulate through the trough and believe a recovery will ensue at some point. Then when it recovers you will really make some $$$ and have a nice relative ROI yield.