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MobilePreacher

 
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  • A Few Reasons Why I'm Attracted To Capstead Mortgage And Its Double-Digit Yield [View article]
    the prepayment risk is quite simple really, if long term 30 year mortgage rates get low enough, people will get out of their ARM's in favor of a lower rate fixed. Thats where CMO takes a hit to book value, when they buy an ARM for 105 and then a few months later its prepaid at par on a refinance.
    Apr 7 09:58 AM | Likes Like |Link to Comment
  • A Few Reasons Why I'm Attracted To Capstead Mortgage And Its Double-Digit Yield [View article]
    While CMO is an excellent security, your article did hit at the heart of its biggest risk to earnings and book value, that being the prepayment rate. Those will need to continue to remain under control. Thanks for the article
    Apr 7 08:25 AM | Likes Like |Link to Comment
  • Should An Intelligent REIT Investor Buy CapStead Mortgage? [View article]
    and to you as well brad.
    Mar 30 10:51 PM | Likes Like |Link to Comment
  • Should An Intelligent REIT Investor Buy CapStead Mortgage? [View article]
    brad the data pre 2008 is irrelevant since the business model is totally completely different now than it was then. It really is a completely different company, with different leadership. There is no comparison. if you look since 2008 you will see the dividend is actually quite stable.
    Mar 30 10:21 PM | Likes Like |Link to Comment
  • Should An Intelligent REIT Investor Buy CapStead Mortgage? [View article]
    Well said sorsorday... I think the concept of risk needs redefinition in our conversation.
    In addition, Brad, when you posted the dividend history for CMO, in the above post. what was that number? Percent paid out? Those numbers dont appear to be accurate, unless i am misunderstanding your post. Please clarify
    Mar 30 05:49 PM | Likes Like |Link to Comment
  • Should An Intelligent REIT Investor Buy CapStead Mortgage? [View article]
    Brad, its not a foregone conclusion that CMO has more risk than O... maybe in the past, but since CMO changed its model its definitely the least risky mREIT and probably one of the least risk REIT's in general. In fact at this point in history with its current portfolio... the case could be made that in fact O is a greater risk of capital when weighted against returns.
    Mar 29 09:19 PM | Likes Like |Link to Comment
  • Should An Intelligent REIT Investor Buy CapStead Mortgage? [View article]
    you are correct sorsorday... prepayment rates are probably the biggest risk to CMO's portfolio. We have outlined this in previous articles. The company does calculate in prepayment rates of between 15 and 20% per quarter, but sometimes as it did a couple quarters ago... they can spike up for various reasons, and that eats into book value and earnings. However the historical norm is that they have made room in their revenue flow to absorb some prepayments. Its the spikes that can hurt them.
    Mar 28 05:46 PM | Likes Like |Link to Comment
  • Should An Intelligent REIT Investor Buy CapStead Mortgage? [View article]
    mine is the truth. Other opinions are allowed, but if i agreed with them then we would all be wrong :-) Lastly, you should get a pro subscription, cause if you could access the articles you would much more knowledgeable :-)
    Mar 26 08:43 PM | Likes Like |Link to Comment
  • Should An Intelligent REIT Investor Buy CapStead Mortgage? [View article]
    User, dont be anonymous :-)
    Mar 26 08:41 PM | Likes Like |Link to Comment
  • Should An Intelligent REIT Investor Buy CapStead Mortgage? [View article]
    Brad sorry if my post was rude and personal.. was not my intention. I do disagree with most of your conclusions however
    Mar 26 09:49 AM | Likes Like |Link to Comment
  • Should An Intelligent REIT Investor Buy CapStead Mortgage? [View article]
    anonymous user 44725 i dont care about pumping the articles. the money from them is such a pittance. Those articles were written to educate people, and when i reference them it is for that reason. Why would i "pump" my own articles that are months old? What benefit do i get? None, just a more educated investor base.
    Mar 26 09:45 AM | Likes Like |Link to Comment
  • Should An Intelligent REIT Investor Buy CapStead Mortgage? [View article]
    if you really want to know what CMO is and its risks... read these articles...

    http://seekingalpha.co...

    http://seekingalpha.co...
    Mar 25 09:31 AM | Likes Like |Link to Comment
  • Should An Intelligent REIT Investor Buy CapStead Mortgage? [View article]
    well yucca, i just didnt want to take 20 minutes out of my life to lay out all the flaws in the article. All you would need to do to repair the "dent" in my credibility is read my past three articles on CMO.
    Mar 25 09:18 AM | 1 Like Like |Link to Comment
  • Should An Intelligent REIT Investor Buy CapStead Mortgage? [View article]
    Just a little research would have saved you embarrassment about the history of CMO's earnings, dividends, etc... you should know that CMO completely changed their strategy a few years ago. Also your article is rife with simple misunderstandings of what CMO is... this is really a terrible article. I am amazed sometimes at what Seeking Alpha allows to be published anymore. But hey its America, everyone is entitled to their opinion
    Mar 25 07:09 AM | 6 Likes Like |Link to Comment
  • Capstead Mortgage boosts payout nearly 10% [View news story]
    actually CMO had been trading below book value for quite some time until their recent earnings report, albeit a much smaller discount to book than the rest of the sector. Right now the shares are trading at a pretty good premium to book, therefore if they sold shares at a price greater than their book value the actually can decrease leverage and raise more cash for other assets.
    Mar 15 08:11 AM | Likes Like |Link to Comment
COMMENTS STATS
425 Comments
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