Seeking Alpha

Some green creeps into the mortgage REIT sector (MORT) after a panicky morning. Sector giants...

Some green creeps into the mortgage REIT sector (MORT) after a panicky morning. Sector giants AGNC and NLY post small gains, while hybrid Invesco (IVR +2.8%) and agency adjustable-rate player Hatteras (HTS +3.1%) have moved strongly higher. Not only did insiders step in to buy plunging Armour Residential today, but they were also buyers (I, II) of sister-company Javelin Mortgage (JMI -2.3%) which got hit with a downgrade to Hold at Citigroup. At the morning's low of $14.69, the stock was trading at a 20% discount to March 31 book value.
Comments (6)
  • Well, book is a lot lower than it was 3/31.
    29 May 2013, 03:28 PM Reply Like
  • mREIT stocks are getting ridiculous cheap now. They are not so bad as AGNC's report. People only focus on the short tern rate hike and forget the long term rate also increasing.
    29 May 2013, 03:29 PM Reply Like
  • I tend to think short term rate hikes would help MORL returns...... so, seems like a good time to buy
    29 May 2013, 05:13 PM Reply Like
  • My guess is that this was a profitable take down orchestrated by hedge funds taking advantage of the uncertainty over rates and spreads. The facts are that mReits were taken down when QE3 was announced and this time they were taken down because of fear that QE3 was ending. That should tell you all you need to know about what is fundamentally behind the take down, i.e, the spread of FUD...
    29 May 2013, 08:39 PM Reply Like
  • I agree. There are the facts and there are the perceptions. You gotta get it straight to get it right. The massive exit by the gazelles caused the share loss. There serious owners, in for the income are going nowhere.
    30 May 2013, 11:51 AM Reply Like
  • If you can get in to AGNC at under 27 - and you can - its a steal.
    I've been very high on banc (bank stock, not mReit) but tookd profit today at about 20% above my purchase. It could keep going though.
    30 May 2013, 08:40 AM Reply Like
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