1. 11/09/2009, AGNC price $26. Divy $1.40/qtr. He gave the thumbs-down, saying the 19% divy was a red flag. Also, the Federal Reserve could threaten the company’s profits if it decides to increase interest rates.
2. 2/12/2010, AGNC price $25.50. Divy $1.40/qtr. Cramer said: Stay away from AGNC. Cramer doesn’t think the 22% dividend yield is safe.
3. 4/29/2010, AGNC price $28, Divy $1.40/qtr. Cramer said he doesn’t trust the company’s dividend, so investors should sell this stock.
4. 5/17/2010, AGNC price $25.85 Divy $1.40/qtr. Cramer believes the dividend is “too high” for this real estate investment trust. He thinks their recent dip is a “red flag.”
5. 6/2/2010, AGNC price $26.79, Divy $1.40. Cramer said Annaly Capital Management is a better play, Cramer said.
6. 6/8/2010 Cramer said Go with Annaly Capital instead.
7. 7/13/2010 AGNC price $27.90 Divy $1.40. Cramer said “I think that dividend is a red flag,” Cramer said. “I don’t want to touch it.” Sell AGNC.
8. Todaym same thing - high divy Red Flag, like NLY, sell AGNC
So, if any one looked at this string of calls, he or she will definitely make a conclusion that Cramer knows nothing about AGNC. Also, how can he likes NLY but not AGNC when he is worried about Fed raising rates? Are the two in the same business? What a moron he is!
Now that Cramer has called sell again, it is absolutely the best time to buy! He is such an accurate countrarian index!
There was a post from TheStreet a few days ago that was a boilerplate recapitulation of the fundamental numbers on AGNC and a wrong recommendation to go along with it. It was clear that it was just database entries that had been fed through a piece of software to create a discursive presentation, and no human had bothered to analyze the company. Either that, or it's an intern-level business writer who doesn't have a clue how mREITs are run or why an mREIT that never grows per-share equity is nonetheless a fabulous investment.
"Cramer doesn’t think the 22% dividend yield is safe. "
Who cares if its not safe, so it drops 5% to 15% like what NLY is offering and he's in bed with!!! Hell if it drops to 10% when the gov starts increasing interest rates in 2 years is still a good deal! What's not to like???