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American Capital Agency Corp. Message Board

  • cagosg34 cagosg34 Mar 18, 2013 10:17 AM Flag

    AGNC and SPO

    I gather that the optimal entry point in AGNC is at the time of an SPO.

    Here is a question to the board:

    So how often they have those "SPO" and sencondly how far in advance are they announced ?

    Also is there any cyclical pattern to the SPOs ?

    Thanks in advance


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    • Cag ...

      As you can see from the data from Onion, SPO's have happened quite frequently. AGNC/MTGE will only do them when the PPS is above the NAV so they can use the proceeds to buy MBS in an accretive fashion [i.e. increases the NAV per share]. They don't announce the SPO's in advance, but it will happen when the PPS is 4% - 5% above NAV. They have to do this to grow as tax law requires them to pay 90% + of their taxable income to shareholders as dividends, and that doesn't leave anything to grow with.

    • Bump.............

    • thats 3 questions....
      Date Action Type Ticker / ID
      02/28/13 Equity Offering AGNC US
      07/18/12 Equity Offering AGNC US
      03/07/12 Equity Offering AGNC US
      10/26/11 Equity Offering AGNC US
      06/23/11 Equity Offering AGNC US
      03/21/11 Equity Offering AGNC US
      01/13/11 Equity Offering AGNC US
      12/09/10 Equity Offering AGNC US
      09/28/10 Equity Offering AGNC US
      05/14/10 Equity Offering AGNC US

      • 1 Reply to onion1273
      • Hey Onion,

        Thanks for the run down spo memory lane? I was there for every one of them. If you simply bought on the close of spo day and sold on the open of DBEX, you made at least a buck or more(usually) on each. Leveraging with Call options as we did deposited many Greenbacks in our pockets. Why buy early when the spo was a 10 for 10 or 100% historic event?

        The reason is simple, patience, something most of us lack, including me. That is why I have developed a monthly trading model to reap benefits while we patiently wait for the next spo. The beauty of the model is monthly reward, over time. With an 80+% historic win rate there will be some months that lose but over time you will win 80+% of the time based upon historic probability.

        IMO, it beats Solitaire...or the uncertainty of random entry points....;-)


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