I just bought FRAK. I wanted to get some exposure to unconventional oil companies into my 401k plan which only allows me to buy ETFs or mutual funds. Otherwise I would have targeted specific companies.
You could also short TWO and buy MTGE, equal $ amounts. The valuation on TWO is insanely high compared to MTGE, yet MTGE had and has better returns for a company performance perspective. TWO spo coming soon I would think.
optionjunkie - Only four mReits declared their dividends so far and one (MFA) declared a special but not their regular yet.
The sector is doing well so there is still room to run on others. Look at CYS. They announced another cut, the stock gapped down then recovered yesterday and continues higher today. I'm not recommending CYS but it shows the underlying sector strength right now.
Take a look at IVR, AMTG, AI and WMC, to name a few and pick your spots.
SeaDrill expects to increase its operating fleet by a minimum of 10 units in 2013, with four additional units each year in 2014 and 2015. The company said it expects a "material increase" in cash flow during the fourth quarter of 2013 when 11 new units will be in operation compared to fourth quarter 2012.
The risk to the company and its investors is that the debt the company bears hinges on continued demand for oil and drilling rigs. If the price of oil drops and exploration activity goes down with it, SeaDrill may not recoup the return on its investment. If that occurs, paying a dividend may be the least of its worries.