Good one, Q. I'm not one to think that we will have a correction beyond what we've already had. If we don't, WMC goes up from here. If we do, then you'll win by waiting. I think WMC is a $26 stock eventually - like MTGE - but it may be the end of the year before we get there. Long and strong .... 24,000 shares.
realize that wmc BV is far below MTGE's. It's core income is high due to better spreads and more leverage, but WMC's stock price isn't going to 26 until/unless there are commensurate increases in BV. AGNC/MTGE mgmt has been great at orchestrating BV increases - while still paying good - and steady - dividends. Trading has brought in income for AGNC/MTGE over and above spread income and strategic above BV offerings combined with undistributed taxable income have increased BV have worked magic - as has the obvious BV accretion that has resulted from prudent asset selection in response to Fed policy. WMC's strategy doesn't seem to be as focused on increasing BC as much as maximizing spread income - which could limit the share price appreciation somewhat.