Is a secondary offering in the offing for American Capital Mortgage (MTGE +1.6%)? At $24.73,...

Is a secondary offering in the offing for American Capital Mortgage (MTGE +1.6%)? At $24.73, shares are trading at a 13.5% premium to the last stated book value (March 31). At that sort of spread, the only question regarding a large secondary seems to be when? (via Dividend Master)

Comments (6)
  • Mike Maher
    , contributor
    Comments (2862) | Send Message
    I'd expect one sometime soon.
    5 Jul 2012, 03:54 PM Reply Like
  • moishep
    , contributor
    Comments (23) | Send Message
    It will likely be priced below current market price and the stock price will drop accordingly. The average retail buyer looks at it as dilutive. Nevertheless, it will be used to either reduce leverage or to acquire additional assets, and will ultimately (and usually in a relatively short time) be accretive. Great time to buy.
    5 Jul 2012, 04:11 PM Reply Like
  • mostserene1
    , contributor
    Comments (3694) | Send Message
    Long MTGE, for the dividends. Secondary offering: meh.
    5 Jul 2012, 04:16 PM Reply Like
  • matt6g
    , contributor
    Comments (4) | Send Message
    They just had one in the last few months already. Did you miss this opportunity?
    5 Jul 2012, 04:42 PM Reply Like
  • Navy
    , contributor
    Comments (265) | Send Message
    AGNC did this in the last quarter and they recovered the PS much quicker than I expected. I am guessing the offspring will be similar.


    Long on AGNC, MTGE
    5 Jul 2012, 05:11 PM Reply Like
  • BDHPlayer
    , contributor
    Comments (310) | Send Message
    Hope they do. Own the sponsor ACAS and every offering increases management fees.
    5 Jul 2012, 05:26 PM Reply Like
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