% | $
Quotes you view appear here for quick access.

American Capital Agency Corp. Message Board

  • nbkkm92 nbkkm92 Jul 7, 2013 5:17 PM Flag

    Many of you are overly optimistic...

    I'm reading alot of chatter about $25-26/sh BV for AGNC as of 6/30, which obviously is a huge premium to current px. But MBS has dropped SEVERAL POINTS since then, so current BV is probably closer to $23-24/sh. And MBS is likely to drop further in coming months as the economy shows continued signs of improvement and everyone realizes (if they haven't already) that bond prices have been artificially inflated by the Fed. So I'm thinking BV will probably stabilize around $21-22/sh in coming months, which means the stock px will likely stabilize around $18-19/sh, after which there will be a modest rally to get back to a ~5% disc to BV. Oh, and if that wasn't enough, all bets are off if an mREIT collapses from a margin call or other liquidity event during this process. Upside from there? If net interest margin really blows out, you'll see them increase dividends in 2014, which will be catalyst for rally back up into mid-20's (at best).

    SortNewest  |  Oldest  |  Most Replied Expand all replies
19.480.00(0.00%)Oct 21 4:00 PMEDT