Imo, whoever handled the spo is still feeding shares into MTGE, keeping a lid on our dividend run-up.
Too many shares infused too late into the quarter might be the reason.
Does MTGE need to file again before the next spo?
If so, this may be a keeper for me until that occurs,
or at least until MTGE recovers somewhat after the ex-drop.
MTGE's recent spo came at a time MBS prices were low.
That could make for a bang-up ER in April.
Imo, a further MBS price drop may spur another MTGE spo,
after the ex-date,
and after a modest ex-date pps recovery,
giving MTGE yet another opportunity to expand the company.
I think... I am holding some and possibly all of my MTGE shares through the ex-date,
--unless we get a substantial spike in pps before Friday.
Imo, that doesn't look like a promising occurance at this point.
It is just the market being the market. Considering that CYS announced after the close on Friday that it was cutting the dividend by 20% (10.5% yield) and CYS ended today unchanged, MTGE deserves to be much higher given its 13.8% yield. I'd much rather own MTGE than CYS, NLY, IVR, etc.
That could very well be happening. I also think the pps was driven to this range because the blowout earnings had the street looking for a dividend raise. Obviously, they stayed true to the AGNC method and used the excess earnings to cover the new shares in an SPO. Generally, I think its trying to find its range right now. The same dividend produced a high right around this level last September.
I am surprised at the behavior since the announcement, but we've got until Friday for the spikes to start sticking. I think we'll see 26.50. Higher if we gain traction tomorrow.
I could be wrong :)
MTGE got the money.
The underwriters got the shares.
I think the underwriter is controlling the price by selling blocks on spikes,
pinning the pps.
Imo, once the underwriter runs low on shares we will see an increase in pps.
Please don't hang me if I'm wrong,
but there has got to be a good explanation
with its decent earnings,
and as yet unblemished track record,
to fail to have a decent dividend run after declaring its usual dividend of .90 per share.