Just started a small initial position on MTGE at 24.35, with its recent NAV at 24.25, and I sold my shares of it on 4/1/13 at 25.99, not a bad time to start an entry position. Ready to buy more if it tanks. I believe it may outperform PSEC by the end of this year. What do you think?
instantwinbutton • May 1, 2013 10:22 AM Flag
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Purchasing!!! Moved price higher!!! Bid 10.87, was 10.85.
24000 block @ 10.87 Also bought at 10.90 at 24000. Helping the stock price a lil bit here I guess.
Looks like he was up quite a bit as he sold out over 11 to buy MTGE which is down quite a bit since he swung his money away
Okay, now your convince me, I will buy some PSEC tomorrow since you asked. Helping PSEC to tank will be my pleasure. Any way, all RETIs including MTGE got hit hard today, BDCs mostly got spared. That may mean BDCs including PSEC will be hit hard tomorrow, you should sell all of your PSEC instead of running your mouth here. Calling yourself master bud? How many PSEC do you even own?
Agency mbs sold off heavy friday, we are now back to the end of Q1 levels. This time treasuries are selling off too. So hedges should have appreciated better vs the drop in agency. So we may actually be a lil higher still then the Q1 end period. I'd have to take a closer look to be sure. So MTGE = pretty close to book value right now. if it drops below book value MTGe will likely repurchase shares. So the key here is to watch MBS prices.. which i hope will stabilize near these levels. The fed is still buying a lot of paper mbs and treasuries putting upward pressure on mbs prices. I would be shocked to see the selling continue into next week. Instead, I think mbs prices will make a recovery next week. Keep a close eye on mbs.
You may want to start building up your position on MTGE since you were smart to sell it when it was high. Both MTGE and AGNC is owned and managed by ACAS, a BDC and now MTGE had almost dropped to its NAV of 24.25 while despite another big drop AGNC is still above its recent NAV, therefore it appears to me now MTGE is a much better buy than AGNC. To me, with the FED continues to hold interest artificially low till 2015, both MTGE and AGNC will be great buys at the RIGHT price (that is the key), since their yields are so much higher (even if they reduce them), to me they will have more upward potential than PSEC. At least Instant, though a shark, was correct in finding values to buy. There is simply no point to hold any BDCs, no matter how attractive their yields appear, if they have no upward potential. That was why TCAP and TAXI got hit hard. MAIN will be next, mark my words. Recently BDCs had suffered from worse than expected earning and their portfolio had become riskier, resulted in lower future earning and dividends. Also, many of them were now traded with premiums, therefore I believe many of them will be downgraded soon and if there is even a small market correction, many BDCs will suffer much worse. Both PNNT and BKCC were already in troubles. In short, one need to identify and hold BDCs that are still sold with discounts and with sustainable dividend. In that regard, I really like GAIN especially if it drops to or below $7. Judging on my holding lowly pref. stock CEFs such as FFC, FLC, JPC, JPI and PSF, bought when they dropped hugely on last November, now performed much better than PSEC despite its higher yield, proving I was indeed correct. I started to build up my positions on floaters and judging by their recent upward momentum, it proves again that I was also correct.