CYS BV approaching $13.50 given the rally in agency MBS
Agencies have rallied strongly since quarter end and BV here is up at least 3-4% to around $13.50 (based on my estimates). The stock should approach $13+ as investors figure this out. The dramatic decline in the company's portfolio CPR in April to the low teens is a positive for earnings as well.
So we get the best of both worlds--higher earnings (and stable to rising dividends) and a higher BV.
look at the orgs that own this including goldman sachs 5.5m with a position value of 42,4 million dollars! State street corp 46 million, vangurad 9+ million. Would this be a loser for these guys, they know more then us and this is a winner!
It is human nature to want the best. However in stocks, to make a profit, the rule is buy low and sell high. Right? Why buy a stock at or near it's high when picking it up after bad news and a considerable drop in price, plus a damn good dividend, increases the chance of a great return.