Seeking Alpha

Two Harbors Buy rating fails to lift stock

  • Two Harbors (TWO -0.7%) blows right through an upgrade to Buy at Ladenburg Thalman, which also ups its price target to $11.25.
  • The stock's off about 25% since April, roughly inline with the rest of the mREIT sector (REM), (MORT +0.1%), (MORL).
Comments (1)
  • Brian Bobbitt
    , contributor
    Comments (1905) | Send Message
     
    Many people are afraid of the high flying, 'in the news' REITs, which is most understandable, IF you are a day trader, or even buy and hold a short time. But if you are someone looking for RTI, then these REITs cannot be beaten. ESPECIALLY if you wait and buy the serious dips. Usually, there is not much more to the firestorm of negative postings, articles and comments than things [may] happen. Selling begets more selling, then panic and so on.
    Okay, so the REITs we are talking about have charts that look their time has come and gone...I just don't buy into that. There is too much room for their activity to help people, and plenty of funding around to keep them afloat. If you think that new five year lows will be installed in most of these, but they will survive, then hold off before averaging down or stepping in. But, I say, do it now. Don't have to mortgage the farm and put it all in, but I am pretty sure now is not a bad time to begin to average down, or begin a base. If these REITs go still lower, then average down more. It is the dividend we are seeking NOT growth. Growth may come and probably will, but that is being dealt a winning hand after the bet is down so don't figure that in. Just stick with the dividends and you will probably be safe. I'm not saying buy and forget, but I would not be too worried until the actual prime rate begins to move up. Currently the July FOMC says rates are staying put. Go for it. prices are lowest in last five years or so. (near enough to call it that)

     

    Capt. Brian
    The Lost Navigator
    21 Aug 2013, 02:56 PM Reply Like
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