Well if that is the case, that MTGE is not going to drip the shares, then they should "pull the band-aid off" all at once. Sometimes waiting in the doctor's office is worse than the visit. Let's get on with it then.
That is true. When it says "The underwriters expect to deliver shares to purchasers on or about , 2012," it's not a "from time to time" filing.
The from-time-to-time isn't a DRIP filing either, it's an "at market" filing. Learned that lesson watching the AGNC quarterly report. AGNC doesn't do DRIPs (though it has an authorized plan, it consistently reports it sells no shares through it), it does "at market" sales through selected brokers, and it does big SPOs through the usual band of underwriting pirates. And of course it also sells preferred shares that look and act like bonds.
Just about all the funding bases covered there. Only thing they don't have lined up is a rummage sale, but if you read the ACAS board, they might start one of those on old assets...
Yeah, I agree Ovi. That's why I think it is a shelf offering. It'll keep the pps from dropping considerably further, and management will be able to keep reins on a runup(and thus an ensuing large selloff), while dripping shares at a higher price. Imo, the 4thQ 2011 AGNC scenerio re-visited.
That's well reasoned but I have to disagree. Like mom always said, "Make hay while the sun shines."
The mREITs have a free pass (supposedly) because rates are to be kept low for another 19(?) months. Further, MTGE, being the new kid on the block, will want to demonstrate and then take immediate advantage of their prowess- I expect a div increase and an SPO right after ExDiv.
AGNC's current market cap is >9.5 *billion*; MTGE's is 235 million (isn't it cute?). Management will want to close the gap as quickly as is reasonably possible.