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American Capital Agency Corp. Message Board

  • philpt philpt Dec 31, 2012 4:19 PM Flag

    Analysis

    AGNC is still down today but just a very small drop. In the next several trading sessions, I expect that its price will be improved and up to around 33.

    Sentiment: Strong Buy

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    • AGNC ain't going anywhere but down in the near future. The price action today was horrible on a huge day for the market. $28 is coming and it it will be here very soon. Sad but true.

      • 2 Replies to hatedahft
      • The following comments are from one of analysts in Seeking Alpha:

        "Though American Capital Agency (AGNC) invests exclusively in Agency MBS, its portfolio is prepayment protected and it owns MBS with low coupon (weighted average coupon of 3.86%) and low balances. This makes the company less exposed to the Fed's aggressive MBS buying and the resultant accelerated prepayments. Therefore, I believe the company is better positioned compared to Annaly Capital. American Capital trades at 0.89 times its book value and offers an unmatched dividend yield of 17.19%. Analysts have a mean target price of $34.5 for American Capital's stock, which is currently trading at $28.99.
        Conclusion
        Given the week outlook of Agency MBS issuance and strong demand from the biggest buyer, I believe Agency mortgage REITs in general and Annaly Capital in particular will underperform in 2013. However, I believe Agency mREITs with prepayment protected MBS portfolios like American Capital Agency will not be hurt as much. Therefore, I recommend investors to consider investing in American Capital Agency"

        Go to Seeking Alpha and you can reading the whole analysis.

        Sentiment: Strong Buy

      • Sad but unavoidable as those of us in 95% cash have been warning. The uncertainty is "guaranteed" with Congress as directors of the play. BTW...its a tragedy....look for AGNC's first lows at 13-18 trading days post EX, followed by the second lows at 30-33 trading days post EX.

        That's historical anyway, and this stock behaves very consistently. Then we get the run to March EX, if the debt ceiling has been raised. If the Tea Party wins and kills the debt ceiling raise we will be hard up against the March 31st deadline, after which, gov't services will begin to be curtailed due to default on funding. All bets are off on the run, if we face that uncertain deadline...sound familiar?

        DocReits

 
AGNC
18.98-0.21(-1.09%)Sep 4 4:00 PMEDT