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American Capital Agency Corp. Message Board

  • sbutl2000 sbutl2000 Mar 5, 2010 12:55 PM Flag

    Need some help

    I own this stock at a lower cost but am thinking about buying some for my IRA should I wait or buy now

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    • Don't fall "in-love" with this stock because of the HUGE dividend.

      Statistically - stocks that pay over a 3% dividedn have been known to CRASH and BURN - quickly.

      Only invest MAD MONEY that you can afford to LOSE in these shares. Could you stomach this staock opening one morning at $2 ?

      If NOT - then DIVERSIFY into other stocks.

      NEVER, EVER have more that 1-3% of your NET WORTH in ANY one stock.

      ..just simple advice...ingnore it if you wish...I have seen the DOT COM crash and experienced it - NEVER AGAIN.

      • 1 Reply to elvisprty
      • Yes, please, I would absolutely love to have this stock sell for $2. I would max out every credit card that I owned, refi a house, and sell my car and truck, and go on margin to buy AGNC call options at that price level. This isn't a dot-goner, they actually own AAA securities that pay a coupon. Unless their auditor finds out that they have actually been buying hookers and booze instead of MBS I would bet both my house on AGNC at $2. I know what the assets that they own yield. AGNC is almost half of my portfolio, which only consist of four securities right now. I sleep like a baby.

    • Is there an Ask Carnak message board somewhere on Yahoo?

      Everyone who owns it now believes it is fairly priced or they could sell. Depending upon dollars and trading costs you could buy a couple of these and dividend reinvest. The AGNC earnings/dividend is somewhat overstated since they have taken some pretty large gains from selling their MBS for gains as they restructured the portfolio. That will not continue, IMHO. You might try to compare price to BV for several and use that for some guidance.

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