Maintaining .90 in this environment is MONSTER!
Selling because of book value is short sighted.
But then, the sec likes to be dominated by short ethics.
News this morning from the authorized major news dealers and distributors is that real estate has "exploded" because they expect mortgage rates to rise.
jThis "news" is a designed suggestion to the hypnotized public to buy houses. Or perhaps, a suggestion to raise mortg rates.
The buybacks by the American REITs will probably hurt them more than inspire confidence. Had they used the buyback money to lessen the impact of a div cut, it would at least make them look more profitable to the shareholders and prospective shareholders considering buying at this low point.
At AGNC a purchase of 12m shares represents approx 280m dollars. This takes distributable and non-distributable cash to do so to the tune of .70/share. They could have given an increase in the dividend which would have had a bigger impact on investor confidence. Price goes up rather than down. A subsequent secondary gets them into a tranche of new MBS with higher spread income which makes another div increase more likely in the next quarter.
The directors, it appears, suffer from groupthink.
And now the oligarchy of market manipulators are driving the market down with tapertalk fear.
Well at least the uber-rich are having fun.
I like the notion of a secondary. I would wait until after ex-div for a week, after some positive foreward looking press releases.
Gee whiz, these reit managers need coaching.
104 contracts on sept10's makes it worth their while to steal your premium.
That is why I am exercising contracts over the weekend. They will have to give up stock they shorted and cover higher.
I ex'd at 10.04. It did not stay below 10 long enough for me to get the order in.
All the rest will auto exerc at 7.5.
See y'all at 20 in november.
boy those manipulators are good at their craft.
I added a pauper's pile just before the close and more over the weekend as options exercise.
They do this all the time to ALKS a midcap pharma on the grow. I just sold at a high now they will drive it down before earnings for a good re-entry in october.
Ok, that means fair value is low 20's. Might take a couple quarters to get there though, if they can maintain the growth rate.