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American Capital Mortgage Investment Corp. Message Board

  • joetong419 joetong419 May 24, 2012 7:55 PM Flag

    The Timing of MTGE SPO

    MTGE management did an SPO back in March after the ex-dividend.

    That makes two SPO before the next ex-dividend.

    Would it been better to offer after June's ex-dividend?

    This might backfire if MTGE share price trade lower to the 21-22 range.

    MTGE and other mREIT has held up in this general market correction.

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    • I am of the opinion that when an SPO takes place, management has lined up the leverage and targeted the MBS purchases. I don't think the SPO proceeds will languish on the Balance Sheet long but deployed promptly.

    • What is to stop them from doing another SPO after ex-date? The stock is currently trading 7.21% above the 3/31 book value and only going up.

      • 2 Replies to iokuok007
      • well they need file it then dont they????

        but hey they are at a premium to book because they are doing well

        did anyone think they created this company to stay at 200mil market cap when you just saw agnc go from 500mil to 7 to 8billion

        why would you stay small

        but if you can get a stock taht trades in a 2-3 dollar range and a 90 cent divi quarterly or so

        whats wrong with that

        buy on the dip or offering and as it rips up shed and then short the top for the offering

        the more like agnc the more opportunities that will be presented.

      • I think they will issue another 11 million shares after the x-date, which,along with this most recent spo, will effectively double the amount of shares from the amount of days ago: 11 mill. plus 11 mill. equals 22 mill. The float of just days ago way around 22 million. Imo, MTGE both kept the damand for this spo up by not doubling the amount of shares right away again and kept to a relative minimum the amount of new shares to which they have to pay this quarter's dividend... I caved,I bought today at 23.35. I think the dividend announcement is rapidly approaching and now is not the time to be too picky regarding price. Good luck all. Go MTGE and AGNC, FOXY

    • Joe, they have had plenty of time to invest the proceeds of the last spo, so that's not a problem. Could they have waited until the next ex-div to do the Spo? I always say that mREITs raise capital when they can, not when they have to. MTGE's stock price was strong and they saw an opportunity to do the spo and sell the shares in an accretive offering. They wouldn't have done the spo if they didn't see an opportunity to invest the proceeds at attractive spreads. The stock price didn't fall much after the spo announcement and that speaks volumes.

      • 1 Reply to marklibera
      • Taking an optimistic viewpoint, if they were doing a bang-up job its possible that they have an excess of cash to the divvy pay out. Although they could hold the money and wait, (I think up to a year) before they are taxed, its possible that they think this is a good opportunity for an SPO. They like the current MBS being offered and increase book value in one fell swoop.

        I know near nothing but its just a thought

    • Management has been nothing short of brilliant with both MTGE and AGNC; I don't think they had a couple of beers one night, and decided it was time for a SPO. Have a little faith in them; you don't know all the factors [and that's being generous] .... use AGNC as your source of optimism.

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