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The hot mortgage REIT sector gets a bit frothier as Javelin Mortgage (JMI) files to raise $125M...

The hot mortgage REIT sector gets a bit frothier as Javelin Mortgage (JMI) files to raise $125M in an IPO. The recently formed business, managed by ARMOUR Residential (ARR), will - what else - borrow short, lever up, and buy MBS. (S-11)
Comments (16)
  • drmwsunner
    , contributor
    Comments (124) | Send Message
     
    ARR has disappointed with all of the secondary offerings and also the drop in dividend payouts from $0.12 to $0.09 in less than a year. I sold my last tranch for a loss because of the last divy drop from $0.10 to $0.09.....between the two accounts I manage, I held 27,000 shares. You just don't know when they are going to issue another secondary or lower their divy payout. They're drunken sailors at ARR.
    25 Sep 2012, 01:45 PM Reply Like
  • DingoDog
    , contributor
    Comments (5) | Send Message
     
    perhaps,,but as of now the stock is still going up....I don't have near 27k shares but I will con. to hold for now
    25 Sep 2012, 01:53 PM Reply Like
  • AlbyVA
    , contributor
    Comments (567) | Send Message
     
    Secondarys are not bad for MREIT shareholders. It is a short term drop in exchange for a long term gain. The secondary money gets levered up and makes boatloads of $$$ cash for the business.
    25 Sep 2012, 02:17 PM Reply Like
  • vhicklin
    , contributor
    Comment (1) | Send Message
     
    I agree, this one makes me nervous had 20k and just sold today if it dips 10 points i may buy again before x div date.
    you can tell the managers are only looking out for the managers
    i would look for the div to continue to drop until the return goes to 10%
    do you have any other monthly div stocks that you like?
    i have phk,psec,hix,agd also like hyd but it only pays 5%
    25 Sep 2012, 05:20 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2580) | Send Message
     
    VNR is an oil and gas mlp, they just converted to monthly
    25 Sep 2012, 07:49 PM Reply Like
  • sk1053
    , contributor
    Comments (6) | Send Message
     
    if you took a loss on this last drop to about 7.39 or so,,,,you are late to the party. I have about that many, collected from 6.6.5,,,6.80,,,,7.01..... get the idea. These levels are a good cushion but not a price to start. (IMO)
    25 Sep 2012, 08:33 PM Reply Like
  • sk1053
    , contributor
    Comments (6) | Send Message
     
    former wall street partner,,,,boutique firm

     

    Manage my $$$$ to live
    25 Sep 2012, 08:35 PM Reply Like
  • starbase
    , contributor
    Comments (9) | Send Message
     
    at a lost!? that comes out to over 2g's a month on divs. arr has been steady at $7-8
    25 Sep 2012, 10:33 PM Reply Like
  • bernie 1
    , contributor
    Comments (533) | Send Message
     
    Thanx Mike-------------I bought VNR yesterday & was up all night thinking of the politics going on in oil & gas.
    I do have ARR in my trading account for now,but in my IRA I'm keeping ARR preferred A plus my royalty & mlp's. This way I build the cash & keep my accountant sane !
    26 Sep 2012, 06:16 AM Reply Like
  • jaylauriano
    , contributor
    Comments (7) | Send Message
     
    Then why is the div dropping? At best, the secondaries are preventing a greater decline of the div.
    29 Oct 2012, 01:19 PM Reply Like
  • Donadog0
    , contributor
    Comments (35) | Send Message
     
    Re-investing dividends at lower prices as I don't own 27k shares.
    25 Sep 2012, 02:40 PM Reply Like
  • Max Tybroski
    , contributor
    Comments (2) | Send Message
     
    Take a look at PGH 6.99% monthly
    25 Sep 2012, 06:31 PM Reply Like
  • Patrick Harden
    , contributor
    Comments (429) | Send Message
     
    Javelin is intended to be the non-agency sister of ARMOUR, much like the relationship between AGNC and MTGE. We'll see how well the ARMOUR management team handles the credit risk introduced by investing in non-agency MBS. Non-agency MBS have had quite a run - not sure how much more room is left to the upside. I think Javelin is late to the party. Of course, as long as the yield curve remains positively sloped, mREITs are guaranteed to be profitable.
    25 Sep 2012, 08:49 PM Reply Like
  • roberto48
    , contributor
    Comment (1) | Send Message
     
    look to AOD and CFP closed end funds (14.51% and 19.48%) monthly
    25 Sep 2012, 10:15 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (1905) | Send Message
     
    Every time some company issues more stock or changes something, lots of folks panic thinking they are trying to hide something. Look at NLY and CIM. Am I happy with both of those. You bet yur best anchor matey!

     

    ARR is one of the best paying REITs and when something changes, many want the others to head for cover. This is just another expansion and proof that the industry is vibrant.

     

    I will be watching the new offer, and all the other pertinent facts regarding owning a stock, and buy more or sell some as the facts NOT the emotions govern my thinking.

     

    Holding ARR for the reason I got in, for the dividend.

     

    Capt. Brian
    The Lost Navigator
    26 Sep 2012, 09:49 AM Reply Like
  • AlbyVA
    , contributor
    Comments (567) | Send Message
     
    Agreed.. I'm in ARR for the dividend, not the stock price swings. Plus, after about 5/yrs of dividends, your money has doubled.
    26 Sep 2012, 11:30 AM Reply Like
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