More on American Capital Agency (AGNC): Annualized ROE of 22% in Q2 - dividend of...

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dlaursen Comments (6)
 
AGNC does it again!! Looking forward to the price action ahead of the ex-date.
2 Aug 2012, 05:10 PM Reply Like

chowzer Comments (42)
 
when is the ex date, pls.
2 Aug 2012, 05:26 PM Reply Like

ChuckJ Comments (44)
 
Last one was 6/19 so probably about 9/19 but I don't think it's announced yet.

ChuckJ
2 Aug 2012, 05:51 PM Reply Like

VeroMike Comments (137)
 
I have held AGNC on and off for a couple of years, made money.
Sold last week when the earnings were off and selling over book value.
Stock still went up.
Bought ACAS this morning, $4.00 below book value.
Up 2% since purchase this morning.
Better value.
2 Aug 2012, 05:15 PM Reply Like

sector Comments (13)
 
ACAS will not pay dividends until stock price and book value narrow.
2 Aug 2012, 05:52 PM Reply Like

ChuckJ Comments (44)
 
Here's what their 8K showed:

SECOND QUARTER 2012 FINANCIAL HIGHLIGHTS
•
$1.58 comprehensive income per common share, comprised of:
◦
$(0.88) net loss per common share
◦
$2.46 other comprehensive income per common share
•
$0.94 net spread income per common share
◦
Comprised of interest income, net of cost of funds (including interest rate swaps) and operating expenses
◦
$1.05 per common share, excluding approximately $(0.11) per common share of "catch-up" premium amortization cost due to change in projected constant prepayment rate ("CPR") estimates
•
$1.62 estimated taxable income per common share
•
$1.25 dividend declared per common share
•
$1.61 estimated undistributed taxable income per common share as of June 30, 2012
◦
Increased $0.33 per common share from March 31, 2012
◦
Represents an increase of $108 million from March 31, 2012 to $492 million as of June 30, 2012
•
$29.41 net book value per common share as of June 30, 2012
◦
Increased $0.35 per common share from $29.06 per common share as of March 31, 2012

I like the fact that their book value increased slightly, but I don't understand the $.88 loss per common share. Can anyone explain?

ChuckJ
2 Aug 2012, 05:32 PM Reply Like

willierup Comments (32)
 
Hi Chuck, Is that all you don't understand? I have to admit the language in this 8K is very confusing .. What was their loss per common share last qtr ?
2 Aug 2012, 06:29 PM Reply Like

billroe Comments (2)
 
I'd like to be sure I'm interpreting this correctly ... 1.65% x 7.6 = 12.54% total return this quarter vs. 2.31% x 8.4 = 19.4% last?
That doesn't sound good. Am I missing something?
2 Aug 2012, 07:36 PM Reply Like

dlaursen Comments (6)
 
The $0.88 loss per common share gets into a whole multitude of possibilities, including pre-payments, booked losses on bad calls (missing the target spreads on the mbs they purchase), mark to market, and it can go on and on. We should get a better understanding once we get the transcripts from the call.
2 Aug 2012, 08:48 PM Reply Like

Jack Rice Comments (580)
 
Well, they seem to be patting themselves on the back. I guess they don't think (0.88) is so bad.
3 Aug 2012, 01:20 AM Reply Like

sector Comments (13)
 
The thing I don't understand is why the shares grew after hours (+0.51%) when it should be the opposite. May be it will change when the market opens.
3 Aug 2012, 03:38 AM Reply Like

ChuckJ Comments (44)
 
Looks like people noticed the same thing we did- AGNC down .17 this morning. That said, I bought some.

ChuckJ
3 Aug 2012, 09:53 AM Reply Like

madav1138 Comments (2094)
 
This should bring most REITs back down to book value where they belong. These are high risk stocks not safe havens, and should only be used as a yield enhancer not a core position.

Rates are getting worse, and pre-payments are increasing, both not good for yield on the their portfolios.
7 Aug 2012, 02:05 AM Reply Like