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Continuation Of Defensive Approach In 2Q Forces Change Of Thesis On ARMOUR From Bullish To Neutral
- Core EPS pressurized by high hedging costs and lower asset yield.
- Company should give up defensive approach and take advantage of lower interest rates.
- Company offers exciting double-digit dividend yield with potential for modest price appreciation.
Frontier Earns Neutral Thesis Despite Attraction For Income Seekers
- Company continues to offer a sustainable dividend yield.
- Has managed to build solid broadband momentum, which will offer attractive growth prospects for future.
- Free cash flows will be pressurized because of high debt repayment coming in the future.
Annaly Moves Smartly To Lower Hedge Positions, Thereby Increasing Core EPS
- Increase in core EPS will improve company's dividend coverage.
- Annaly’s diversification to commercial and triple net lease assets reduced dependency on traditional agency MBS.
- Stock an attractive total return opportunity of 17.30%.
CenturyLink Moves Forward With Strong Growth In Strategic Revenues
- Strong growth in strategic revenues and slowdown in decline of legacy revenues paint compelling outlook for the company.
- Company offers significant potential for price appreciation based on discounted free cash flow analysis.
- CTL’s management likes its current structure and will not opt for REIT model for next year or two.
Two Harbors Remains A Hit With Its 17% Attractive Total Return
- The company’s strategic investments continue to paint an encouraging outlook.
- TWO has reduced its reliance on the repo market through FHLB membership.
- The company needs to reduce its hedged positions, as the macro-economic environment is stable with low interest rate volatility.
American Capital Agency In Prime Position To Benefit From Lower Interest Rate Scenario
- Company has taken right steps by increasing allocation to high yielding 30-year MBS and reducing overall hedged positions.
- Rates will remain low since slacks identified by Fed continue to persist.
- AGNC’s dividends are well covered by core EPS.
T-Mobile Earns A Neutral Thesis As Potential Merger With Sprint Collapses
- Company posted strong postpaid and prepaid net additions in second quarter.
- Continues to invest heavily in network and expand 4G LTE framework.
- TMUS suffers from declining ARPU and high churn rate.
Hatteras Does Well To Offer Safe Yield But Suffers From Absence Of Growth Catalysts
- Short term interest rates expected to remain low in the near future due to slack in labor market.
- The economic environment looks favorable for mREITs with stable and predictable rates.
- Lack of growth catalysts.
AT&T Continues To Remain A Preferred Stock In The Telecom Space
- Both T and VZ used different strategies and added over a million postpaid subscribers.
- Next will add significant subscribers in the future and help maintain T’s lowest industry churn.
- T also has a strong balance sheet and high total returns.
Neutral To Bullish As Verizon Cleans Up Its Act In Both Wireline And Wireless Segments
- Company has delivered strong performance in the second quarter in both segments.
- VZ has proven ability to add new subscribers and maintain lower churn in competitive environment.
- Management has begun to build cash to participate in upcoming low band spectrum auction.
This Mortgage REIT With Its 19% Upside Potential Is A Must For Investors
- Attractive opportunities in non agency and commercial MBS.
- Short term rates are expected to remain low.
- Access to FHLB funds reduces the dependency on repo market.
CYS Fails To Deliver In Q2 Earnings; Defensive Portfolio Approach Earns Neutral Rating
- Company needs to give up defensive approach and divert its resources to high yielding assets.
- Initiatives need to be taken to enhance asset yield.
- CYS should also re-structure its hedged positions according to labor market conditions.
Sprint And T-Mobile Put Forward A Case For Merger Through Combined Spectrum Bid
- Bigger companies not too bothered by attempt at combined bid by smaller players.
- Combined bid not yet a done deal, as FCC could still scrutinize it.
- Both VZ and T are also eager to acquire low-frequency spectrum.
Sustainable High Dividend Yield Attracts Investors To CYS Despite Worrying Strategies
- Neutral thesis on CYS due to weak growth prospects given its high exposure in agency RMBS.
- Defensive approach needs to be better managed to tackle interest rate scenario.
- Company needs to diversify portfolio mix to enhance asset yield.
AT&T Comes First In List Of Preferred Stocks As Verizon Fails To Impress
- VZ's strategy to compete in network quality not sustainable for a longer period.
- Subscribers will be attracted to other carriers with lower costs and flexible payment plans.
- T also a better option due to cheap valuations and high dividend yield.
Why CenturyLink Is Best Placed Among RLECs
- CTL has shifted focus from dividends to investing in new projects.
- Stock remains attractive for income-seekers with high dividend yield.
- Growth in broadband and video services will offset declining traditional voice revenues.
Investors Wary Of Poor Past Performance Of RMBS Attracted To Two Harbors
- Company’s significant exposure to non-agency RMBS and MSR investments will help increase earnings.
- TWO has low sensitivity of interest rates to book value.
- Compelling total return opportunity of 25%.
- Low prepayment risk.
Diversified Portfolio Secures Annaly's Future Growth Prospects
- The company’s core EPS experienced a massive decline, pressuring dividends.
- NLY has decided to reduce short dated swap position by $24 billion.
- Tapering will not remain such a big concern if economic indicators continue their solid trends.
Growth All Around As AT&T Gets Ready To Release Second Quarter Results
- Q2 earnings later in the month will beat analyst expectations because of solid subscriber momentum.
- T’s healthy dividend yield is well supported by strong balance sheet and hefty cash flows.
- Increased demand for data will continue to drive growth in the future.
American Capital - An Attractive Stock In The Agency Mortgage REIT Space
- Economic improvement has momentum to continue in future.
- Low supply of MBS helps in reducing the impact of tapering.
- Stock has dividend yield of 11% and modest potential for price appreciation.
Frontier Remains A Stock Of Choice For Income Seekers
- Company’s dividends remain safe and secure.
- Acquisition of Connecticut business paints a compelling outlook.
- Growth in broadband subscribers will continue.
Windstream Needs To Revise Dividend Strategy As Company Remains Overvalued
- WIN’s broadband internet shows signs of recovery despite numbers being negative.
- Business revenue has lost momentum.
- Investors continue to enjoy high yield, but risks of elevated payout ratio remain a concern.
Investors Continue To Flock To Armour
- Company continues to be attractive after maintaining dividends.
- Macro-economic environment is stable and economic indicators are showing solid trends.
- ARR still needs to strike balance by managing risk and increasing asset yield.
CenturyLink Remains A Dividend Story
- CTL’s dividend yield remains safe and has attractive future growth prospects.
- Data centre and hosting provides a significant growth potential.
- Rising operating expense and high debt remain concerns.
- AT&T: High Dividend Yield With Limited Growth Opportunity
- Mondelez International: Highly Attractive Long Term Growth Prospects
- Verizon: Attractive Valuation With Promising Future
- Kraft: Attractive Dividend Yield With Low Growth Prospects
- Why Sprint Nextel Is A Buy
- Verizon And BCE: Which Is Better?
- CenturyLink: A Buy For Attractive Returns
- Why Kellogg Is A Buy