I recently took a small position in WMC (Jan Calls and Equity) after losing bookoo bucks chasing MLPs that cream-pied my #$%$ Anyway WMC and NYMT were mentioned earlier by other respectable posters, do you think these two would be the best performers chasing the Dec divi runs, considering they're trading close to BV with currently the highest yields in the REIT business, I mean how much further could they possibly drop with yields closing in on 16% ? Could I get cream pied twice ? Thanks
I understand, but arent' the fundamentals there like all the other REITS? why should this one be any different, it should recover just like the others, I haven't seen any news to the contrary. If it drops any further your talking a 17% yield, will the market let that happen.
I wouldn't be too quick to follow the leads of the so-called "smarties" on this board. WMC was touted as a can't miss, and it is now falling faster than Obama's re-election chances.
They are working on AMTG in the same way. AMTG has a large well of undistributed even after they upped the div from .75 to .85. On both of these I would look for a one point move following their earnings, if it does not recover before then. I would guess that both are below book now.
"Xion has the right idea to put his money in AGNC"
Well, according to his posts, X has just recently (last week) owned 2,500 EPD calls, along w/ ETP and CQP calls. Roughly 30 days ago, he had 2,777 BMY calls.
The whole sector is breaking down. Long rates go up, shares go down because of lower BV.
Long rates go down, shares go down because of narrower spread. We need a change in sentiment and only good earnings can do that.
but the market makers are stingy.
When I scored shares At 20.67 they would not sell me january 20's for 1.65, now at 20.85 they offer them for 1.60. , now they just flipped the ask back to 1.75. Their algorithms must have some reliable sentiment adjusters in it.
It is a waiting game. The computers might push this down some more next week so I will try again.
because I am looking for a deeper dip before earnings.
Good economic news all week and the market was still a downer. With the uncertainty of the election, we will see more of it next week. Not counting a menagerie of puts bought today, I am about 70%cash.
I don't know what to think about WMC. The company only has been trading since 5-2012 so we really only have one 10-K and that really doesn't say too much. It was a partial quarter, a SPO has been done in the 3Q and total assets are only 513M.
I think we will see a book value increase but as JT says it really doesn't create a floor for the stock. They won't have much in the way of appreciated assets to sell (have some) so they will have to make their numbers on the spread.
They are non-agency so QE3 will have less impact. It will be interesting to see just how much, if any impact. Last quarters leverage was at 8.3x, I hope it holds.