This is my favorite stock so I watch it closely. I think it is likely to go quite a bit lower, but it depends on the cliff, debt ceiling, etc. I took my gains, and got out before the divy at about $25.50. Be careful and GL .... I expect to be back in at some point.
The question remains.... How long will it take for the discount to book value to evaporate and the stock to return to its normal 1.15x to 1.25x book value range? I think that the demand for yield is so high that it will drive the premium on mtge back to its previous levels. 29 or 30 per share by May is not out of the question. The fiscal cliff is just a unfounded fear that will never be realized. Congress will pass an extension of the bush era tax cuts to all people for 2013. I believe they will also agree to raise the taxes on Americans for the years following 2013.