the woodwork! The BIG DIV! But, hopefully they will be smart enough to do their dd before jumping in! With the problems facing this sector, especially AGNC in particular, I can't see too many investors willing to pay over $25. And you can bet it will fall like a rock on XDIV, as the shorts jump in with both feet! How many times will it retest 25 before investors start backing out? I even doubt it will go much higher. If it goes much higher it starts being a good short; even with paying the div.
Wrong... AGNC has good future earnings... you'll be paying the stock holders high dividends for a long time to come. Current NAV doesn't matter when the company is earning $1-$2 per quarter. Its not uncommon for stocks to trade multiples of book. In fact, I believe AGNC will trade at a 1.5x NAV. This was the case for ACAS back in its day.. ACAS historically traded 1.4x NAV on average back then. I think this will hit $33 by the end of the year. JMHO.