To hold a 15 percent yield with 0.80 quarterly, share price is $21.33. Adjust that SP up or down based on confidence in forward looking performance. Too bad they can't announce payouts 8-months out like PSEC.
Buy-backs are always bad news and a bad use of funds, but a 12 million share buy-back is token at best for propping share price.
Based on tomorrow's likely trading volume, they could have it wrapped up by noon!
The delay in the announcement was bound to be bad but I suppose nobody's talking about how the low expected payout was 0.85 and the high was $1.25.
I'm glad I sold but I miss my darling AGNC and I can't stop watching this debacle. I just wonder how the pumpers and the MM's that they work for can live with it. I'm sure they'll continue spinning a positive angle to this.
Shareholders are actually a profit center for this and other mREITs. When shares are selling for more than book, additional stock is sold, which raises average book. When the stock is selling for less than book, stock is bought back, again increasing book value per share for the remaining shares. I'm not saying it's a bad thing; these buybacks help to stabilize the stock price. I just find it somewhat amusing that the stockholders are a source of revenue and profit.
"Buy-backs are always bad news and a bad use of funds,"
think about what you are saying....AGNC always has to reinvest principle so the question becomes do you buy MBS in the open market or do you buy some of your own equity where you are buying MBS for 85c on the 1$....
As for PSEC....beware their ATM machine when pps over nav