IMO...... Interest rates and have dropped so much, the spread cant be that good right now. And mortgage applications hit 14 year lows. it seems like the law of supply and demand would tell you its not a good time to push a bunch of new loans on an already oversupplied market like NLY is doing.. I hope AGNC thinks this way too, and doesn't issue more shares this quarter. IMO of course, what are you LONGS's thoughts?
They have to grow and buy more mtg agency debt in order to fuel the dividend. Look for more shares to be issued, especially when the stock is at or above $28. Look for it to happen about a week after earnings.
I have no basis for my assessment, but I have the feeling that they will issue more stocks if the price hold up around 27 and above. I'll just have to wait and see, hopefully, my target price will be hit so that I can sell before earning (buy on the rumor and sell on the new, but don't hold the bag). 3 points X 3500 shares =10,500 and I'm still making another 5k on the divi. That why I love this stock!
My fear with NLY offering is that sometimes co's do offerings at or near the peak in their earning ability. Not sure about reits though. CNX did an offering at 41.50 a while back and the stock has not been there since.
Entities like AGNC et al never stop raising capital if the price is right...You want resources just in case the bottom of the interest rate market falls out and the Fed starts unloading its MBS portfolio.
I think they will finance in August because they can. The dividend is so huge there are enough Mom and Pops who will buy..
The dividend in my opinion is headed for $4.00 a share next year...But at $27.00 that is still a steal...
we will find out or have a clue when the earnings report comes out.nly's stock price hasn't dropped all that much since the new shares were issued,but it doesn't hurt when you have cramer pumping it up.wait until nly earnings report.