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American Capital Agency Corp. Message Board

  • 1987kevin@gmail.com 1987kevin Sep 3, 2013 5:45 PM Flag

    Shall we short this stock?

    I feel that this stock is doomed to some degree. Only thing AGNC can do is more hedging and smaller profit/dividend.

    Sentiment: Sell

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    • The new crop of Mortgage REIT's generally had one of three investment strategies, with some overlap amongst the three: those modeled primarily after Annaly Capital Management (Cypress Sharpridge & Invesco), those that primarily acquire, originate and manage mortgages (e.g. Colony Financial, Apollo) and those that primarily target distressed debt with the intent to workout (e.g. PennyMac). But I believe over the past 5 years a new mortgage REIT category has emerged on a rather Extreme Strategy those that tried to corned the market in 30 year Fixed rate Agency at record low interest rates of 3% and 3.5% and finance it with variable rate very short maturity debt and leverage this strategy 8 and 10 to one. This is a rare breed of M-REIT and indeed a very EXTREME STRATEGY. I base my proposition that they loaded up and borrowed to the hilt to maximize buying a much as they could at the highest prices and lowest yields.

      THIS IS THE EASIEST SHORT ON THE NYSE TODAY at $22.75 to $23.00, how can you loose with a portfolio and strategy like that. THIS IS A NO BRAINER.

    • kevin sell the house and car and short away. What could go wrong? Put on your big boy pants and hammer down.

 
AGNC
19.11+0.03(+0.16%)Sep 2 4:00 PMEDT