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American Capital Agency (AGNC) announces a secondary offering of 32M shares. The firm joins a...

American Capital Agency (AGNC) announces a secondary offering of 32M shares. The firm joins a rush of mortgage REITs taking advantage of a nice run in their stock prices to well above book value. Shares -2.2% AH. (PR)
Comments (22)
  • MikeyLV
    , contributor
    Comments (80) | Send Message
     
    Well, it was only a matter of time. Can't see how anyone could be surprised by this. It's what they do.
    17 Jul 2012, 04:16 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2610) | Send Message
     
    Trading 20% above book, it was bound to happen. I'm more concerned about the per-announced Q2 numbers that this announcement.
    17 Jul 2012, 05:11 PM Reply Like
  • MexCom
    , contributor
    Comments (3053) | Send Message
     
    Excellent timing for me. I'm going to be swimming with cash tomorrow from a called bond.
    17 Jul 2012, 04:16 PM Reply Like
  • jarts98
    , contributor
    Comments (7) | Send Message
     
    I'm new to mREIT investing. What does this mean to someone long AGNC? Is it a positive or a negative? Is it time to buy?

     

    Thanks.
    17 Jul 2012, 04:24 PM Reply Like
  • sector
    , contributor
    Comments (13) | Send Message
     
    Here is the article which explains the secondary, buying tomorrow
    http://bit.ly/MGanAe
    17 Jul 2012, 04:31 PM Reply Like
  • losbronces
    , contributor
    Comments (701) | Send Message
     
    This is the second one this year, 1st was March 8 with shares priced at $29.35.

     

    This offering should be priced close to current book, so I would expect around $29 for the new shares. Usually means the share price should drop below $30, but with demand for yield I wouldn't bet on that.
    17 Jul 2012, 04:34 PM Reply Like
  • jarts98
    , contributor
    Comments (7) | Send Message
     
    Thanks for the link. If I understand it correctly, it looks like bad news to existing shareholders, unless you want to add to your holdings on the dip in price.
    17 Jul 2012, 05:01 PM Reply Like
  • sector
    , contributor
    Comments (13) | Send Message
     
    Only the case if one bought just before the offering. It usually climbs back in 4 days or even less. But it provides the strong entry point.
    17 Jul 2012, 05:05 PM Reply Like
  • TRBRADY
    , contributor
    Comment (1) | Send Message
     
    Time to buy because the secondary will be priced at about book value which is currently well below the current share price.
    17 Jul 2012, 05:49 PM Reply Like
  • Dividends#1
    , contributor
    Comments (2766) | Send Message
     
    Are you saying AGNC will drop tomorrow to $29 from $35? That is about a 17% drop.
    17 Jul 2012, 11:58 PM Reply Like
  • losbronces
    , contributor
    Comments (701) | Send Message
     
    Clearly, I am wrong about the pricing. Demand will keep a premium in place over book value. I wouldn't be surprised to see the price drop a little from here though.
    18 Jul 2012, 12:03 PM Reply Like
  • smurf
    , contributor
    Comments (4130) | Send Message
     
    Is the symbol AGNCP? Or is this a previous one? Down $.14 today. Dividend is 7.55%
    17 Jul 2012, 04:51 PM Reply Like
  • losbronces
    , contributor
    Comments (701) | Send Message
     
    Here is AGNC's press release. It has all of the contact information for inquiries: http://bit.ly/MiaF3t;highlight=
    17 Jul 2012, 04:57 PM Reply Like
  • jarts98
    , contributor
    Comments (7) | Send Message
     
    Isn't AGNCP the preferred stock issue? The news today was for a common stock offering.
    17 Jul 2012, 05:03 PM Reply Like
  • sector
    , contributor
    Comments (13) | Send Message
     
    AGNC, here is the link with all the news on the right side
    http://bit.ly/MinBGz
    17 Jul 2012, 05:03 PM Reply Like
  • cullison9
    , contributor
    Comments (4) | Send Message
     
    Iz this a bying opportunity?
    17 Jul 2012, 05:07 PM Reply Like
  • Rbongni
    , contributor
    Comments (33) | Send Message
     
    2nd graders shouldn't be buying stock.
    18 Jul 2012, 10:44 AM Reply Like
  • johnnybeegoode
    , contributor
    Comments (9) | Send Message
     
    What I don't understand is why they don't issue warrants to their existing shareholders (say for 30 days) this would mean the existing shareholders would not be affected by the decrease in the share price AND the costs of raising the funds would be far less i.e. no underwriting fees. I just don't get it.
    17 Jul 2012, 05:48 PM Reply Like
  • macpaulsen
    , contributor
    Comments (29) | Send Message
     
    This is a SELLING opportunity. I will dump it tomorrow am and probably buy CIM with a BV of .66 versus AGNC's BV of 1.19 (yields are 14.2% for AGNC versus 15.2% for CIM). I hate to do it because I have a great LT gain and a lot of dividends from this winner but the premium to book is getting just too much for me to ignore.
    17 Jul 2012, 05:48 PM Reply Like
  • kingdad
    , contributor
    Comments (1023) | Send Message
     
    MReits do not act nor raise Money like ordinary stocks as many here seem to think. If you don't understand Reits perhaps you shouldn't be investing in them.

     

    AGNC's 2ndary offering will impact the share price (probably briefly) but these offerings are accretive to the other stockholders as this money is put to work making more money/earnings for the Co. almost immediately.

     

    I sold my shares last week anticipating a secondary offering was way past due and to lock in my nice Capital Gains along with the 2nd Qtr Dividend for a nice little Paycheck. This dip now gives me pause to consider buying back in or to consider the performance of these mReits going forward into the 2nd half of the year.
    18 Jul 2012, 04:36 AM Reply Like
  • dep2x61
    , contributor
    Comment (1) | Send Message
     
    Would this be a good time to sell AGNC and buy it back after the secondary, priced lower?
    18 Jul 2012, 11:59 AM Reply Like
  • Mike Maher
    , contributor
    Comments (2610) | Send Message
     
    If you had sold yesterday, yes. But with the secondary already having taken place, you were 24 hours late.
    18 Jul 2012, 03:21 PM Reply Like
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