Tue, Sep 2, 2014, 5:54 AM EDT - U.S. Markets open in 3 hrs 36 mins


% | $
Quotes you view appear here for quick access.

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

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • 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.

23.65+0.14(+0.60%)Aug 29 4:00 PMEDT

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.