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Armour Residential (ARR) prices its 65M share secondary, with the underwriters retaining an...

Armour Residential (ARR) prices its 65M share secondary, with the underwriters retaining an option to buy an additional 9.75M shares. Shares -4.8% premarket to $6.75. Book value was $7.77 on Sept. 30, about $7.29 on Dec. 31, and about $6.73 yesterday. That's a 13.4% decline in 4.5 months. Who's buying the secondary? (PR)
Comments (11)
  • I'm getting tired of the Dividend Cuts, and ever decreasing stock price. I have no interest in the secondary offering.
    14 Feb 2013, 09:02 AM Reply Like
  • we must be looking at different charts -- what decreasing stock price?
    14 Feb 2013, 09:07 AM Reply Like
  • $ARR getting crushed, Armour managers becoming greater millionaires! They have the formula down to a science. Great buy at 6 or below, average at 6.66 or below, full retail plus tip north of that!
    14 Feb 2013, 09:07 AM Reply Like
  • I taught that they should know by now that whenever they do offerings the share price will drop, just like what happen to VNR.
    MS
    14 Feb 2013, 09:13 AM Reply Like
  • Guess I didn't see the offerening coming. I would have sold. Did anyone warn and I just missed it?
    14 Feb 2013, 10:05 AM Reply Like
  • REIT's are starting to act just like a Ponzi Scam.

     

    Pay an attractive dividend, then steal it all back when the stock price declines.
    14 Feb 2013, 10:18 AM Reply Like
  • We should consider that management believes that there are accretive investment opportunities as rates begin to rise and they want to have additional cash to take advantage of the opportunity. stabalizing/rising book value, accretive interest income and greater diversified asset base are all attractive attributes to an investment strategy.
    14 Feb 2013, 11:59 AM Reply Like
  • sell ARR and CFP . let the money roll in baby.
    14 Feb 2013, 11:59 AM Reply Like
  • I have learned to be patient....the ups and downs of these are expected with high dividends. Just buy when the price is down to 25% or less of its low and wait. The yield if 12% or more is still strong and worth the wait.
    14 Feb 2013, 12:12 PM Reply Like
  • comments from DB's Hold Rating...Yesterday, ARR priced a secondary offering of 65 million shares at $6.84 per share, raising net proceeds estimate at roughly $440 million. "Given currently available spreads versus the existing portfolio ROEs, we believe the new capital can be deployed at slightly accretive levels assuming roughly 9.0x leverage," the firm notes.
    15 Feb 2013, 11:12 AM Reply Like
  • Deutsche was the lead underwriter.
    15 Feb 2013, 12:50 PM Reply Like
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