If you look at all of the "on paper" REITs they have been loosing money for the last couple of years. Brick and mortar REITs like Reality Income (O), have been increasing their stock price, dividends and book value in the same amount of time. But, they are only paying around 3 - 5%. I've been in REITs for the last 5 years and have seen the downward slide and have lost lots of money in principal, although I've made money in dividends so that its just about a wash right now. A conundrum to be sure.
Sentiment: Strong Buy
If you don't play the cycle and just buy and hold, that is exactly what you will get. You had a horrible strategy. You have to know where you are in the cycles affecting you specific industry and investment and the strategy these companies use to make profit. When I went into M-REIT's, I knew I had to get out of them 6-12 mos before rate rising pressure shows up. Should have done a better investment plan or strategy. Right now, you should be surfing the 2 year sharp rise in rates to 2016, this is a ground floor, once in a lifetime opportunity. Staying in a M-REIT during the next two years, is very very dumb.
Tell that to the brokerage firm when they issue a margin call. For some reason they are of the mistaken belief that the value is what it is even before you sell. Imagine that. How could they think such a thing? Or is it because they know what they are doing?
I think ... that you don’t comprehend the complete picture. I'm sure a lot of A123 stock owners felt the same. Now they own shares they cannot sell even if they wanted to. But hey, they haven't sold them so I guess they haven't lost anything, as you would say. After all, they can frame them and put them on the wall and say that they paid $100,000 for those stocks and they would not sell them for a dime less. They can take them their grave. Of course they won't have to worry about any grave robbers stealing their worthless shares. But they can rest in peace knowing that they never lost a dime because they never sold.
Time is not endless. There were a lot of people saying "you have not lost until you sell" GM, prior to riding it down from 22 to 0. That's a garbage argument you got there. My statement shows AGNC value. That's tangible. 22 is 22. It's one thing to lose 8-10% on paper and quite another to lose 35%, regardless of words of wisdom like you don't lose until you sell.
I am going to ride the losses with you. Expect the collateral damage to continue through May 31,2014. Don't be a sucker and buy more after the stock goes Ex-Dividend at the end of Oct. Remember the the last 3 dividends have failed to get above the the price before it went ex-dividend. An expect the dividend to drop to 85c the next quarter. Gary Kain appears to be heading down the river of no return. See me June ist 2014. The Dow goes up 128 points today and AGNC squeezes more blood out of people in the last 30 minutes. Thanks Guys!
You're losing money because you've invested in the most panic-driven, out-of-favor sector in the market.
I'm in the same boat, dude. Welcome aboard. Oh, and don't forget to enjoy the soaring yield on the 10 year note, which is behind all the trouble.
Sentiment: Strong Buy