Seeking Alpha

American Capital downgraded at Sandler O'Neill

  • The Summers withdrawal and resultant bond market rally had the mREITs (REM +0.7%) opening sharply higher, but the rally is fading, with sector giants Annaly (NLY -0.5%) and American Capital (AGNC -0.3%) now in the red.
  • American Capital is the subject of a downgrade to to Sell from Hold at Sandler O'Neill. Sandler cut another pure-agency player, Armour Residential, to Sell as well.
  • Compass Point - on the other hand - raised a number of non-agency mREITs to Buy (or initiated them at that level), and upgraded Armour to Buy as well.
  • Related ETFs: MORT, MORL.
Comments (32)
  • This is about normal for mREITs and Silver. It is amazing how they both attract so much controversy. Both are good, a bit risky, but necessary and good. I have sold off all my mREITs ONLY due to retirement and allowing a manager to do it. I will let NO ONE talk me out of PM's as long as there is a government run by idiots.
    Capt. Brian
    The Lost Navigator
    16 Sep 2013, 01:06 PM Reply Like
  • Brian-


    How many centuries do the idiots have left? Your opinion, please?


    16 Sep 2013, 01:28 PM Reply Like
  • I am happy that I increased my position in AGNC when it was trading between 20.20 and 22. Keep the downgrades coming. I am looking forward to my next dividend being reinvested at a lower price.


    Looking for a dividend between .90 and $1.05. We will know within the next few days.
    16 Sep 2013, 01:07 PM Reply Like
  • Sandler O'Neill come out of the weeds.Who are you and what do you base your newest downgrades on? The Shawster.....
    16 Sep 2013, 01:19 PM Reply Like
  • shawster,
    Never trust those guys who claimed to be analysts, full of bias, and often come with an agenda .
    20 Sep 2013, 12:28 AM Reply Like
  • Who is Sandler O'Neill? Never heard of them before.
    16 Sep 2013, 01:23 PM Reply Like
  • Wind-


    Googled and found they are a private hedge fund.


    Could not access the web sites displayed by Google. Each site had "tech issues."


    Do they have time to issue ratings, but not enough time to keep their own house in order? Just wondering?


    16 Sep 2013, 01:35 PM Reply Like
  • The NY Times had an article on them 9/15. One of the last still private Wall Street bankers.
    16 Sep 2013, 02:52 PM Reply Like
  • Their site was probably overwhelmed with people like you who wanted to look at it to see who they are.
    16 Sep 2013, 09:34 PM Reply Like
  • I've said it before and I'll say it again: Caution is your friend when dealing with mREITS. These are not "buy and hold" stocks for the "long haul" to paraphrase Jeremy Siegel. I believe at least .90 cents dividend this quarter. However, stormy seas ahead. Pull this in six months and bust my chops if I'm wrong, but I see a $17 stock within six months. Disclosure: I sold out of all my mREITS (wmc, arr, mtge and agnc) in late July/early August. Wanted to remind everyone there were SCREAMS to buy AGNC at 26 and 25. "Fire Sale" most people shouted. This was also said of ARR at 6 then 5.50 then 5 etc etc etc......


    These are highly leveraged complex instruments/stocks.
    16 Sep 2013, 01:56 PM Reply Like
  • they are a buy when they are being trashed by analysts like now, and a sell when everyone and their mother is talking about getting into them and they keep going up
    16 Sep 2013, 02:41 PM Reply Like
  • Specifically, what do you see that tells you that the stock will be at $17 in six months?
    16 Sep 2013, 09:37 PM Reply Like
  • Milbank.....rising 10 yr to 3.3-3.5%. They're too big to maintain dividend without raising more capital/SO. Slowing of the housing market and finally, WAY too many companies now doing this same thing with a finite amount or mortgages out there. A micro cap like WMC or NYMT may be safer.
    18 Sep 2013, 08:56 AM Reply Like
  • I understand but, $17 is more than a 25% drop from it's current price of $23 after already dropping 37% in the last year. I was wondering how you came to that particular price for a bottom.


    Disclosure: I bought WMC the first week in July at $16.00 and have an outstanding order to buy AGNC at $19.50.
    18 Sep 2013, 11:00 AM Reply Like
  • I forgot to mention Phattboy43, thanks for responding.
    18 Sep 2013, 11:06 AM Reply Like
  • chopchop,
    Most articles are full of bias, and often with an agenda to steal.
    Be careful what we read.
    20 Sep 2013, 12:30 AM Reply Like
  • Is the sky falling, again?
    16 Sep 2013, 03:12 PM Reply Like
  • stuyoung,
    Some authors make it sound like the "Sky is Falling."
    Lots of bias.
    20 Sep 2013, 12:31 AM Reply Like
  • Many articles are written with an agenda to steal, beware.
    So much bias from these so called authors.
    Most are greedy and crooks.
    16 Sep 2013, 03:20 PM Reply Like
  • Baloney
    17 Sep 2013, 11:11 AM Reply Like
  • And like everyone, they think that a trend will last forever! Until it doesn't and changes. They can't see the signs because their vision is clouded.
    16 Sep 2013, 04:58 PM Reply Like
  • Last month I bought AGNC and today I bought NLY. I don't believe these analysts I sold both of them when they were on their buy list and I have bought now when most have already sold.We all know these are heavily leveraged and should be hold with caution but you don't get such return without risk. Both looks good for now.
    16 Sep 2013, 05:14 PM Reply Like
  • pankaj123,
    Good move.
    20 Sep 2013, 12:32 AM Reply Like
  • Authors on this site, while perhaps opinionated and off target, are not crooks, thieves and liars. It's not all a conspiracy. To be honest, there seems to be a lot of conspiracy/ulterior motive suspicions on stock message board sites. If I were short a stock, I would never presume an article I wrote or a comment I made would move a stock higher or lower.
    16 Sep 2013, 05:50 PM Reply Like
  • also.....analysts at brokerage firms and research houses are most definitely not always right. However, I don't believe a company will intentionally "downgrade" a stock just to allow clients to buy it lower. Same goes for upgrades. No analyst will make up a sell recommendation without good reason. Why would he or she jeopardize their entire career? Just my opinion. If an analyst downgrades a stock in which I'm long, it pisses me off to be sure. However, I never think it is a conspiracy to allow his clients to buy it cheaper. It's just not that sinister.
    16 Sep 2013, 05:59 PM Reply Like
  • a g n c has payed more dividend since 2008 then the market value of the shares today ...which means that if you have been holding the shares you have them almost for nothing or you have double your cash ....
    16 Sep 2013, 06:21 PM Reply Like
  • Everyone's an expert once the bashing begins. Never once do any of these articles give credit to the folks who run these mreits. Do these authors think these companies are run by stooges? The "experts" have no problem recommending buys when the shares are on the upswing. The mreit correction took place so now's the time to buy them, when they're on sale
    16 Sep 2013, 09:40 PM Reply Like
  • kpw212,
    You said it well.
    24 Sep 2013, 12:17 AM Reply Like
  • as long as the wall street peoples took care of my monney i lost mi pants , now i take care of it myself ,i made all my losses back , plus
    17 Sep 2013, 09:19 AM Reply Like
  • yup. The best manager of money is yourself. If nothing else, just stick it index funds and beat the majority of so called "wall street pros"
    17 Sep 2013, 09:37 AM Reply Like
  • chopchop,
    They should be called "Wall Street Crooks."
    20 Sep 2013, 12:34 AM Reply Like
  • Index funds are, in my opinion, the best overall investment. Small Cap, Large Cap, Mid Cap, International and Emerging Markets.
    17 Sep 2013, 09:59 AM Reply Like
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