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Western Asset Mortgage Capital Corporation Message Board

  • coreykoble coreykoble Nov 7, 2013 11:46 AM Flag

    To preserve BV, put a $20 under your Mattress - Invest to earn income

    This shows how deeply out of favor this sector is with Wall Street. Everyone assumes these stocks should trade at a substantial discount to NAV, and what they earn doesn't matter.
    Fine, put a $20 under the mattress, and it will preserve BV wonderfully, and earn nothing (Essentially AGNC's strategy).
    On the other hand, a company earning a 22% yield is trashed. Well, I'm glad my $16 share of WMC EARNS $3.20 a share in income, that's why I invest.
    Give me another sector where stocks trade at a discount to BV in this market...and earn, and yield anything near this.
    Most BDC's trade at a premium to BV (a book value which is much harder to determine the true value of), and earn much less. NYMT trades at a premium to BV, and will earn less than WMC.
    If your primary focus is preservation of BV, may I recommend a US treasury bond.

    Sentiment: Strong Buy

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WMC
9.49-0.41(-4.14%)Feb 9 4:02 PMEST