Although the stock has taken a hit it still may be a good investment. I have followed the pps of most of the REITs for the last 4 years and AGNC holds up. Even though the divy has dropped from around 18-19% the pps has remained fairly stable historically. Anyone who has had AGNC for the last 3 years will see that if at any time they decided to bail because of a dropping divy, they didn't loose principal. Just my opinion based on the pps chart.
Sentiment: Strong Buy
Price is still above a support trend line from Oct. 7th 2011 and good chance it bounces off that level which is just a few cents lower... I bought the dip, back in after some months.
It was nice to see the price close out 30 cents above the low of the day, some buyers showed interest about 3;30PM. I believe they didn't want to be out the stock over the weekend as people digest what really happened in Q1 with the TBA financing. Once folks realize this was an anomaly that should not repeat, they should return to the name. I made my first , but smaller than normal buy today. I bought AGNCJune30s@1.22 Just a small position but it validates my post. Bow
"any time... dropping divvy
AGNC's dividend only dropped once and its pps ROSE considerably.
Different circumstances, I know, I know.
but Jeeeze, even Joe Louis took one on the cheek from time to time.
Management has stated that what had ailed it is already self healing.
Many here have thought that AGNC's dividend was going to be cut this quarter numerous times,
probably one of the reasons that AGNC's pps did not recover to its 36+.
Imo though, I unfortunately that think 33 may be the new 36,
and BATESAT may yet make a comeback.
Those "buy and holders" with high-priced shares should be quick to take notice that AGNC has in the past been a great stock to "Buy AT Twenty-Eight Sell At Thirty".
This sometimes occurred twice per quarter, hardly making one a "day-trader" for those not prone to be overactive in the trading department.
Personally, I'd love for another pattern to develop besides ones of huge intra-day swings but everything equal at the EOD.
Of course there may be a shift to a tad higher: Buy 29.50?, Sell 31.50?
The dividend may very well dictate the pps.
1.00 at 30 is 13.33%.
If the recovery from its loss of gait is truly currently steadying,
AGNC should not need to decrease its dividend much lower than to 1.00,
if at all,
and the lower dividend may be a short-lived one.
Well written. While I agree with 95% of your post I have to say that the $36/share was a freak of nature based on holders of other REITs, who's numbers were dropping, selling off and hoping to get into a more stable environment, (AGNC), Once that buying stopped the price settled back down to where it should be, 32.50 - 33.50. I would love to buy more but I'm waiting for the divy announcement in June. I believe with the new guy they hired it will continue to be one of the top REITs out there.
Sentiment: Strong Buy