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American Capital Agency Corp. Message Board

  • wrkoehler wrkoehler Jan 6, 2012 9:43 AM Flag

    SPO's

    I am a virtual newbie to the game and have been advised to purchase some stock when the SPO's are offered. How do i find this informationa and how to buy/sell the stock.

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    • Welcome abaord.

      You have a million places online to find out about SPO's that will give you a better definition than I can. But, SPO's and how they affect AGNC, that's another story.

      When, ( not if) AGNC does offer, you do want to jump in as it has recovered the SPO price within a week or 2. Also a great way to lower your cost per share.

      You may also want to keep an open order for.... let's say anywhere between 22.50 and 24 dollars, as in the past year, AGNC 2 X's in the past year blipped that low and popped right back up.

      Good luck

    • Many on this blog have been waiting for the illusive SPO. Some fear it may never arrive while others have become impatient and extremely angry. Excessive waiting can be deadly.

      http://www.writerscafe.org/uploads/stories/3bd91c44d8a275bff7110e0e308a0cf3.jpg

    • In September, the closing price on the night that the SPO was announced was 28.65.
      The subscribers had a purchase price of 27.60 (28.65-27.60=1.05; 1.05/28.65=3.66% discount), and AGNC received a net price of 27.02 (2% discount to underwriters).


      Using the same discounts as the last SPO would suggest that the pre-SPO price be a minimum 28.51 (26.90/.9434), in order to break even with the MRQ BV/share of 26.90.

      Current Book Value/.9434 == $28.51 for breakeven. But i'm thinking above break even. Last anouncement was at a stock price of $28.65 when the book value was 0.14/share less. If you add $28.65 +0.14/share = $28.79/share trigger SPO

 
AGNC
19.51+0.18(+0.93%)Jun 28 4:00 PMEDT