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Western Asset Mortgage Capital Corporation Message Board

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  • slegermark slegermark Oct 26, 2012 8:13 AM Flag

    Why WMC will go up dramatically

    Height projection is a relative probability call. There are several hybrid REITs in this class. Those I define as similar book value and dividend. We have AMTG which pays .85 they just raised last Q so look for a good earning report, MTGE pays .90 and probably the very young king of a very young class, WMC which pays .85. and right now has the best value to price ratio going. MITT just raised to .77 and demonstrated exhuberance at one point. Those four are in my awareness as equals.

    To make a call on how high it will go, the market supports the price of the king, so all the knaves have that potential if they demonstrate equal integrity. Any one that raised the dividend in the last quarter will have a reliable earning report. If it traded down more than the div amount since then, then we have an opportunity. MTGE has given me concern but every time I bought the dips I have been rewarded.

    I sold all my NCT, the first to report, yesterday after a 5% jump. Now I will, as Doc says, layer in on wmc. This is a very low price for a company that behaves like an expert. The market earns my temporary gratitude to skittish human behavior.

    Thanks to this board for keeping the conversations on investing.

10.06+0.05(+0.50%)Oct 21 4:01 PMEDT