Seeking Alpha analysis predicts a div cut to 90 cents, but says they can maintain $1.25 right now. If you look at AGNC quarterly report, book value dropped, and there were some other negatives. I think they will maintain the current div when they annouce this week. But look out for cuts during the year. If they cut the div, share price will drop below $30.
Sentiment: Hold
Didn't they say in the conference call that they were not going to lower the dividend? Also, I looked at what happened the last time they cut their dividend from $1.40 to $1.25 and nothing happened to the stock price. In fact, it went up. It would seem to me that you are expressing unresolved concerns only. We all have them.
...then go ahead and short, you'll make a killing courtesy of seeking alpha
Sentiment: Hold
Seeking alpha is written by 3rd graders
Sentiment: Strong Buy
spoken like an experienced 2nd grader...lol
Seeking Alpha isn't Forbes or the Wall Street Journal. It's a collection of bloggers. This is just one bloggers opinion and nothing more - and it doesn't sync up with the spreads in Q4 at all.
Sentiment: Buy
I agree. One has to realize that the posters on seeking alpha are just people sitting at home in their pajamas. However, they do seem to attract more knowledgeable powers than the people posting on yahoo, for example. But they are often wrong. But for that matter, the people on Forbes and the WSJ are often wrong as well. But at least they are doing it full time and thus have more time to get their facts right. But that doesn't mean that their interpretation of the facts is always correct. Especially if they let their political ideology influences their perspective. After all, an intelligent investor will bet against their own politically ideology in order to make money. I’m a green energy guy but that would not stop me from shorting a green energy stock or from buying stock in an oil company.
The Dividend cut is old news and is priced in. I expect a bid PPS drop when interest rates are raised.