Javelin Mortgage Investment (JMI) - NYSE
  • Wed, Mar. 2, 9:15 AM
    | Wed, Mar. 2, 9:15 AM
  • Wed, Mar. 2, 7:20 AM
    • The two struggling mortgage REITs share the same external manager, so the transaction isn't as exciting as it otherwise might be. Jeff Zimmer and Scott Ulm are co-CEOs and co-vice chairmen of both.
    • Under the terms of the deal, Armour (NYSE:ARR) will tender to acquire all of Javelin (NYSE:JMI) for a cash amount equal to 87% of book value. Based on JMI's estimated book value as of March 1, the price would be $7.14 per share vs. last night's close of $6.
    • The deal will bring Javelin's portfolio of non-agency MBS onto the Armour balance sheet (filled with agency MBS).
    • Source: Press Release
    • Previously: Mortgage REITs mull Apollo sale (Feb. 26)
    | Wed, Mar. 2, 7:20 AM | 26 Comments
  • Fri, Feb. 26, 10:07 AM
    • The mREITs (REM +1.3%) are higher across the board after Apollo Residential Mortgage (AMTG +31.3%) agrees to a sale at a hefty premium to last night's close, but still at a discount to book value.
    • The entire sector is trading at sizable discounts to book value, with some names at massive discounts. For its part, Apollo Residential yesterday could be purchased for about 60% of its end-of-year book value. And the assets on the books of these companies tend to be highly liquid and easily valued.
    • Running an mREIT may not be a terribly efficient exercise at the small market caps most of the sector sports. The companies depend on being able to issue stock with which to fund growth, but can't do so (without being wildly dilutive) when the shares are trading at such wide discounts.
    • Sector giants Annaly Capital (NLY +0.6%) and American Capital Agency (AGNC +1.2%) have market caps above $6B, and Two Harbors (TWO +0.8%), Chimera (CIM +1.1%), CYS Investments (CYS +1%), Invesco (IVR +3.5%), Hatteras (HTS +1.2%), MFA Financial (MFA +1%), and Capstead (CMO +1%) are all near or well over $1B.
    • Players in Apollo's league (sub-$500M market cap) include New York Mortgage (NYMT +1%), Western Asset (WMC +0.6%), Anworth (ANH +1.3%), Dynex (DX +1.4%), Arlington Asset (AI +4.6%), AG Mortgage (MITT +8.7%), The Ellingtons (EFC +1.9%), (EARN +1.1%), Javelin (JMI +2.8%), Orchid Island (ORC +1.5%), Five Oaks (OAKS +0.7%), ZAIS Financial (ZFC +1.3%)
    | Fri, Feb. 26, 10:07 AM | 32 Comments
  • Dec. 15, 2015, 11:29 AM
    • The company on Monday morning announced a number of measures to boost shareholder value, but the news wasn't enough to keep the stock from tanking yesterday amid panicky action in general in the mREIT sector.
    • Javelin's (NYSE:JMI) manager - Armour Capital Management - is cutting its management fee to 1.5% of total stockholders equity per year. The rebate is effective immediately and is expected to foot to annual cost savings to JMO of $1.8M.
    • Non-management director fees are cut to $75K per year, which should save $340K annually.
    • The buyback plan is expanded to 2M shares from the current 1.358M available.
    • Wolverine Asset Management discloses a 5.1% stake in Javelin. While pleased with the above moves, the investor names its own slate of nominees for the board.
    • Shares +8.1% in today's session to $6.02.
    | Dec. 15, 2015, 11:29 AM | 4 Comments
  • Dec. 14, 2015, 11:32 AM
    • Before it was fears about interest rates - first, with long yields too low and thus slimming margins, and then the Fed's promise to hike short rates (and slimming margins even more). Now we can toss credit worries into the mix, and the action's plenty panicky there - junk bonds are off sharply again today and two more funds have been forced to gate withdrawals and/or liquidate.
    • Once pure-play agency REITs like Annaly Capital (NLY -2%) and American Capital Mortgage (AGNC -1.7%) now have some credit exposure.
    • Others are more credit-exposed: Chimera Investment (CIM -3.5%), Invesco (IVR -2.7%), American Capital Mortgage (MTGE -2.8%), MFA Financial (MFA -2.8%), New York Mortgage (NYMT -4.7%), Western Asset (WMC -3.6%), Anworth (ANH -2.9%), Arlington Asset (AI -3.6%), Javelin (JMI -4.8%), Orchid Island (ORC -7.4%), Five Oaks (OAKS -12.3%)
    • Just to pick a few out, Annaly Capital sells at a 24.4% discount to Sept. 30 book value; American Capital Agency sells at a 26.3% discount; Invesco at a 30% discount; MFA Fnancial at 15.4% discount; New York Mortgage at a 25% discount (this sold at a premium to book as recently as early fall).
    • ETFs: MORL, REM, MORT, LMBS
    | Dec. 14, 2015, 11:32 AM | 65 Comments
  • Oct. 7, 2015, 11:15 AM
    • So roughed up are the mortgage REITS (REM +0.7%), that what's now a six-day rally in the sector is little more than a blip on the longer-term chart.
    • There's no particular news today, but with much of the sector trading at somewhere in the area of a 15-20% or even higher discounts to book value, even the worst scenario on interest rates may be more than priced in.
    • Leading the way higher today are Ellington Residential (EARN +4.3%), Javelin Mortgage (JMI +3.4%), Arlington Asset (though not a REIT) (AI +2.3%), Dynex Capital (DX +0.9%), Apollo Residential (AMTG +1.2%), PennyMac Mortgage (PMT +1%), Cherry Hill Mortgage (CHMI +1.2%), Hatteras Financial (HTS +0.5%), Two Harbors (TWO +0.8%). The action in Annaly Capital (NLY) and American Capital Agency (AGNC -0.3%) is more subdued.
    • ETFs: MORL, REM, MORT, LMBS
    | Oct. 7, 2015, 11:15 AM | 27 Comments
  • Oct. 5, 2015, 12:36 PM
    • With a wave of Q3 dividend cuts now in the rearview mirror, perhaps investors are looking ahead to what might be stability in payouts. With most of the sector trading at double-digit discounts to book value - and plenty of names selling for more than 20% discounts - even stability should be enough for a reasonable rally into year-end.
    • Leading the way higher is Five Oaks Investment (OAKS +6.4%), while mREIT giants Annaly Capital (NLY +1%) and American Capital Mortgage (AGNC +1.2%) are sector laggards today.
    • Two Harbors (TWO +1.7%), CYS Investments (CYS +2.3%), New York Mortgage (NYMT +3.5%), Dynex Capital (DX +2.4%), AG Mortgage (MITT +2.6%), Javelin Mortgage (JMI +4%), Armour Residential (ARR +2.9%), Orchid Island (ORC +4.2%)
    • ETFs: MORL, REM, MORT, LMBS
    | Oct. 5, 2015, 12:36 PM | 22 Comments
  • Sep. 28, 2015, 12:24 PM
    • It's a big ex-dividend day for the mortgage REIT sector, but the stocks of payers like Ellington Residential (EARN -6.2%), Arlington Asset (AI -10.4%), Western Asset (WMC -4.9%), Two Harbors (TWO -5.7%), Chimera Investment (CIM -7.3%), New York Mortgage (NYMT -6.9%), American Capital Agency (AGNC -3.2%), and Annaly Capital (NLY -4.8%),  are down far more than their payout amounts.
    • The above declines include the dividends being paid, so are higher than actual.
    • Others like Armour Residential (ARR -2.9%), Javelin Mortgage (JMI -4.2%), Five Oaks (OAKS -5.9%), AG Mortgage (MITT -3.4%), and Invesco (IVR -4.2%) are just down.
    • The decline comes as another Fed head all but promises a rate hike this year, and the 10-year Treasury yield falls back six basis points to 2.10%. Thirty-day Fed Fund futures are pricing in just less than a 50% chance of a 25 basis point rate hike in 2015.
    • ETFs: MORL, REM, MORT, LMBS
    | Sep. 28, 2015, 12:24 PM | 77 Comments
  • Aug. 21, 2015, 3:30 PM
    • These income favorites often catch a wave of buying when the major averages sell off and yields fall, but the panicky action today is taking down nearly all equities.
    • The iShares DJ U.S. Real Estate ETF (IYR -1.7%) and the iShares FTSE NAREIT Mortgage REIT ETF (REM -1.6%), however, are outperforming the S&P 500's 2.7% decline.
    • Previously: Just a modest rally for Treasurys as stocks crumble (Aug. 21)
    • Leading the mREITs lower is Javelin Mortgage (JMI -5.9%), with SA contributor ColoradoWealthManagementFund noting the company has stopped buying back stock despite its wide discount to book value. The sector as a whole looks like it will continue to have to deal with widening spreads and rising prepayments, and still have a looming rate hike cycle on the horizon.
    • Armour Residential (ARR -2%), CYS Investments (CYS -1.8%), Annaly (NLY -1.2%), American Capital Agency (AGNC -1.8%), Arlington Asset (AI -2.4%), Orchid Island (ORC -2.5%), Dynex (DX -2%), Capstead Mortgage (CMO -1.3%).
    • Equity REITs: Realty Income (O -0.7%), Vereit (VER -2.3%), Health Care REIT (HCN -1%), HCP (HCP -1.1%), Gramercy Property (GPT -3.1%), Equity Residential (EQY -1.6%), Simon Property (SPG -0.5%), Kimco (KIM -2.1%), Hospitality Properties (HPT -2.8%), Stag Industrial (STAG -1.4%), American Campus (ACC -1.1%), Public Storage (PSA -1%).
    | Aug. 21, 2015, 3:30 PM | 38 Comments
  • Jun. 29, 2015, 11:24 AM
    • The smallest players are being hit hardest today, with Orchid Island Capital (ORC -8.9%), Five Oaks Investment (OAKS -3.4%), and Cherry Hill Mortgage <<CHM>I> leading the sector lower. Arlington Asset (AI -1.3%), Apollo Residential (AMTG -1.2%), and Javelin Mortgage (JMI -0.8%) belong in that group as well.
    • Sector bigwigs Annaly Capital (NLY -0.1%), American Capital Agency (AGNC -0.1%), Two Harbors (TWO -0.2%),and  MFA Financial (MFA -0.3%) are holding up better.
    • Previously: Rates plunge on Greece gets ready to default (June 29)
    • ETFs: MORL, REM, MORT, LMBS
    | Jun. 29, 2015, 11:24 AM | 46 Comments
  • Jan. 6, 2015, 2:17 PM
    • The 10-year yield has plunged all the way down to 1.94% and one would figure on some nice increases in book value for the mortgage REITs (REM -0.1%), but on the flip side are narrowing interest rate spreads (especially as the Fed still seems to be intent on hiking short rates), and what hedging losses the companies are taking.
    • Other ETFs: MORT, MORL
    • Individual names: Annaly Capital (NLY +0.4%), American Capital Agency (AGNC), Armour Residential (ARR -1%), CYS Investments (CYS -0.2%), Invesco Mortgage (IVZ -2.7%), New York Mortgage Trust (NYMT -0.5%), Hatteras Financial (HTS -0.3%), Western Asset Mortgage (WMC -2.7%), Ellington Residential (EARN -0.4%), Javelin Mortgage (JMI -3%).
    | Jan. 6, 2015, 2:17 PM | 20 Comments
  • Oct. 9, 2014, 10:40 AM
    • It's been a good week for mortgage REITs (REM +0.7%) which rose on Tuesday as the broad market tumbled and brought yields down with it, rose more on Wednesday, this time alongside a major broad market rally on dovish FOMC minutes, and are on the move higher again today as the averages again head south.
    • Down to 2.28% earlier in the session (a 16-month low), the 10-year Treasury yield is now flat on the day at 2.32%.
    • This week's strong move comes following a tough September in which the mREITs gave back a nice chunk of their YTD gains.
    • Annaly (NLY +1.2%) is up nearly 5% over the last four sessions. American Capital Agency (AGNC +1.5%) is ahead more than 6%.
    • Others: Armour (ARR +1%), Chimera (CIM +1%), CYS Investments (CYS +1.2%), New York Mortgage (NYMT +1.3%), Anworth (ANH +0.8%), Dynex (DX +1%), Javelin (JMI +1.5%), Five Oaks (OAKS +0.9%).
    • Other ETFs: MORT, MORL
    | Oct. 9, 2014, 10:40 AM | 5 Comments
  • Sep. 30, 2014, 3:05 PM
    | Sep. 30, 2014, 3:05 PM | 32 Comments
  • Sep. 17, 2014, 2:51 PM
    • Another $10B taper this month brings QE to just $5B monthly, an amount the FOMC expects to go down to zero with its next policy meeting. The "dots" shifted somewhat higher - meaning maybe a slightly earlier start to Fed rate hikes and a higher level of Fed Funds at the end of the next few years, with the median forecast being 2.9% at the end of 2016.
    • Mortgage REITs (REM +0.2%) have been under pressure in the sessions ahead of the FOMC, and are mostly snoozing through today's news.
    • Annaly (NLY -0.1%), American Capital Agency (AGNC +0.1%), CYS Investments (CYS +0.2%), New York Mortgage Trust (NYMT +0.5%), Dynex (DX +0.8%), Ellington Residential (EARN +1.2%), Javelin (JMI +1.3%).
    • Previously: FOMC statement and projections lean hawkish
    • Previously: Yellen press conference: Falling UE rate still masking labor market weakness
    | Sep. 17, 2014, 2:51 PM | 13 Comments
  • Jul. 7, 2014, 7:35 AM
    • Javelin Mortgage (JMI) is lower by 0.7% premarket after Citigroup.s Donald Fandetti cuts to Sell, noting higher interest creates will be a headwind for the company. Why pick on Javelin? The stock trades at a premium to book value, says Fandetti, vs. most of its peers selling for discounts.
    | Jul. 7, 2014, 7:35 AM
  • May 7, 2014, 3:50 PM
    • Ahead of Annaly Capital (NLY +1.7%) results after the bell, the mortgage REITs (REM +0.8%) are higher across the board, led by the four who reported earnings after yesterday's close. New York Mortgage Trust (NYMT +2.8%), Apollo Residential Mortgage (AMTG +1.3%), AG Mortgage Investment (MITT +3.3%), and Javelin Mortgage (JMI +0.9%).
    • Bond yields - mostly at the short end - are slipping amid Janet Yellen's congressional testimony.
    • At the current price of $7.59, New York Mortgage Trust is trading at 1.16x March 31 book value, and Javelin Mortgage - which was one of the cheapest in the sector a few months back - is trading right at book following large share buybacks at the behest of activist investor Phil Goldstein. MITT and AMTG continue to trade at sizable discounts to book value.
    • Related ETFs: MORT, MORL
    | May 7, 2014, 3:50 PM | 1 Comment
Company Description
JAVELIN Mortgage Investment Corp. is a real estate investment trust that invests in mortgage backed securities and related investments. It invests primarily in fixed rate Agency and fixed rate and hybrid adjustable rate non-Agency residential mortgage-backed securities. The company is externally... More
Sector: Financial
Industry: Mortgage Investment
Country: United States