So what, we are sending Superman, more powerful than a locomotive, able to leap tall buildings in a single bound..........
Maybe, but I am in this for the long run..fear of the Fed tightening is over anticipated and fixed asset investments are way over sold...This is a great opportunity to lock in a good return at a lower price.
Why don't you try a little DD on this stock? It's amazing what you might find out if you research this company a little bit.
This company could become cash starved and unable to raise capital with an SPO. If that's the case where else do you look to raise funds (hint: debt is getting too expensive!)
Fear of higher interest rates hurt FFC along with every other high yielding investment. However, fear in the markets is generally "over blown". I don't think that the Fed is going to tighten as much or as quickly as the Market currently thinks. FFC in the $18's is probably a good point to get in. If need be, you could always hedge using TBT or some other interest rate sensitive issue.
With all of the issues facing AGNC and MTGE, I am surprised that the management of the companies haven't made some statement reassuring investors regarding their mid to long term business strategy. I do not view this as a good sign, in fact, it's disappointing. I have been shorting AGNC from $29.80, but only to protect $28 and $27 puts that I sold earlier. I would like to see these stocks turn around, but the baggage that these stocks carry is too much.
o Fed possibly tapering MBS purchases
o Rising 10-year rates
o Earnings and Book Value from last quarter
o Possible dividend cut
I could see AGNC at $20 - 22 and MTGE at $15 -17 in the next two months.
Book value as of March.....what about BV in June.....I hope it doesn't happen, but BV could take another big hit if the value of AGNC's portfolio tanks again.
At least you could say WIN is consistent...earnings miss, revenue miss....sooner or later they will drag expectations so low that the stock will actually look attractive...the conference call today was lipstick on a pig....one analyst actually got a little "testy" with the CEO regarding management's attempt to hedge their forward outlook...one positive thing is that management views the dividend as a key part of their value strategy. There has to be a real disaster for them to cut it....I think that the dividend is SAFE....Also, I think that their free cash flow will improve during the last two quarters of this year as they reduce CAPEX......The current price should be a good entry point