I've already bought. Can ya believe a 20% yield at $5.40. Gonna load up some more.
Another reason mortgage REIT's are tanking is because they are competing with the gov't. Remember, QE3 was focused on buying mortgages. With the 2000 lb gorilla in the room, spreads are narrowing therefore profits are going to be coming down.
Now, when QE3 winds down (anyone's guess at this point), then spreads should widen again.
And, let's not forget .... Dr. Ben said no interest rate hikes till 2015 !!!
Come on $5.40 !!!!!
OK. The manufactured crash is over. Picked up 5K and am in the green. Also pickup MORL in the 20.5x range. When they finally announce a divy (early to mid-Jan), we should see a nice jump in share price. An ETF with a 25% divy ... outrageous.
I can make a case mortage rates may be close to bottoming. QE3 ends in December at which time the Fed can access how much employment has been created from free money. Also, repo rates are expected to decline in the first half of '13. Even if they pop up towards the end of December that's just seasonal and due to European banks. So, the fed could replace the program but I don't see the value in lowering rates below what they are now since there isn't capacity in origination to handle even more activity - this puts a cap on cpr's. Everyone seems to forget QE pulls down rates in general.
Almost? Greed is good said Gordon Gecko. Thankyou jackhiller for telling me I missed the point and wouldn't be able to buy at book or below book. I feel so dumb in his presense.
At what point do we buy this stock?? Unless my math is wrong, at $5.90 the stock represents a 18.7 yield. I know these stock have been beaten harder than rented mules. I sold ARR @ 7.04 and am tempted to buy @ $6.79. Sanjose, do you think the huge drop in price today is that it is a small cap issue? Having said that NLY got beaten up. Thompson-Rueters btw still has this stock as "positive" for NYMT.