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American Capital Mortgage Investment Corp. Message Board

  • lenloc lenloc Jan 30, 2013 4:55 PM Flag

    Well, just holding & collecting divs very profitable strategy

    Look Ma, no hands.
    Since last march $4+ in cap gains and $2.7 in divs =6.7+/22 x 100=30.5% return in 10 months or 36.6% in a year.
    Anyone who boasts of CONSISTENTLY beating that is not to be believed.

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    • Len ...

      If you are suggesting that you can earn 36.6% in MTGE every year by letting it ride, then you are not to be believed. Over time, you are not going to get $4 in cap gains every 10 months. The PPS tends to cycle through a trading range due to the inevitable SPO's ... we both know that. And the dividends are not cast in concrete either.

      A buy and hold strategy can be a good technique - especially if you bought at $17.90 like Foxy did [congrats on that Foxy] - but you will be fortunate to get the divy yield associated with your buy-in price over time ... and that may be quite enough. I guess you bought at a price like that, so kudo's, but the PPS run up is a one time thing.

      Are you still in there with NTI, Len?

      • 2 Replies to ray858945
      • goodell Feb 1, 2013 11:18 AM Flag

        Ray, do you have an email address that I could contact you re : NTI or is there another board that you follow. Yahoo has no MB for NTI ? TIA ...I had talked with Maria T several weeks ago and she is correct so far

      • ray,
        As usual i have to agree with u. Of course i do not expect anywhere close to $4 pps gain every 10 months. To be honest i was needling the day, or rather hour traders. Even the div is not all that secure. But i still feel the MOSTLY b/h strategy is best. It worked for me great in the golden 80s and 90s during which time my investments overall appreciated enormously. It has not been so good the last "lost decade" or ever since we began fighting stupid wars on the credit card.
        But i doubt the day traders have done better either.
        I did not buy nti but sold 60 puts @22.5 for march and june which is a bullish stance. I usually stay fully invested in my roth and cannot buy outright a lot of new stock in that account. I probably do have a fair amount of cash in my taxable account due to stupidly miscalculating and thereby over saving for the roth conversion tax hit but i don't buy non qualified div stocks in that account for obvious reasons.
        I'm sure nti has compensated u for selling mtge provided u bought enough.

    • you forgot to mention to "Ma" that you have no brains either!!

    • Hey Len,
      I own MTGE in my ira I bought at 17.90, from which I have collected dividends since.
      The way I see it: I've got such a big cushion in pps, and the yield from that money is irreplacable.
      So, why not let MTGE's management disappoint(at least once) before I even THINK of selling those shares.
      Since MTGE is a relatively new company,
      its management might have avoided some of the VERY FEW traps that AGNC might have stumbled upon, since their management has some of the (former?still?)AGNC team.

      Good luck,
      Go MTGE,

    • hey len,that works for me,i am a %guy,you can that at a bank today and not for a long time to come..

      Sentiment: Strong Buy

17.19+0.02(+0.12%)Sep 30 4:00 PMEDT