Seeking Alpha

Next mREIT target for Bulldog?

  • It's mission accomplished at Javelin Mortgage (JMI) for Phil Goldstein's Bulldog Investors, but there are other "vulnerable companies," says JMP's Steve Delaney. “Management doesn’t have a lot to stand on if the REIT’s stock is trading at 80 percent of its book value."
  • Javelin has returned 33% since Bulldog disclosed a stake (and called for fast buybacks) late last summer even as the rest of the sector - including giants Annaly (NLY) and American Capital Agency (AGNC) - continued to decline. Goldstein has deferred to comment on his next target but has said he's eyeing both equity and mortgage REITs.
  • Anworth Mortgage (ANH) - trading in the area of a 30% discount to book - is a "clear target" for an investor like Goldstein, says Delaney. The company repurchased 2.8M shares in Q4 and boosted its authorization to another 5M.
  • Annaly and American Capital are likely too big to be targets, says Delaney, as is a smaller shop with a big backer like Leon Black's Apollo Residential Mortgage (AMTG).
  • Related ETFs: REM, MORT, MORL
Comments (2)
  • Darren McCammon
    , contributor
    Comments (1170) | Send Message
     
    AGNC and ANH are already buying back shares, AMTG or maybe AI seems to make a better target. Or you can go along for the ride via bulldogs closed-end fund SPE
    16 Jan, 01:47 PM Reply Like
  • William Packer
    , contributor
    Comments (359) | Send Message
     
    The best target for Bulldog would likely be $CYS. Deep discount to book value, easy to value assets (all agency). Low market cap.
    29 Jan, 04:15 PM Reply Like
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