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Red the Bear

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  • A Closer Look At American Capital Agency's Cash Flows As Of Q2 2012 [View article]
    As I have said time and time again, Reits are by their very nature
    volatile entities subject to many uncontrollable influences, and therefore MUST be watched with due diligence and caution.
    Your very fine analysis added a new perspective to my Reit education that I appreciate greatly in that I am long in certain Reits including AGNC for their ability to return high returns for a moderate investment, I use these returns to further and add to my positions in the rest of my rather conservative portfolio, and do not let my REITS exceed 15% of the portfolio worth.
    I have been in AGNC for a few years and
    added to my position at various times as my portfolio has grown so that at this moment my average share price is at 27.97. I have received 20+k in dividends and a Capital Gain of 15+k. It has been good to me BUT I am not married to it. As I have said...."Nitro in a blown glass bottle".
    Sep 11, 2012. 03:31 PM | 2 Likes Like |Link to Comment
  • The Future Price Of American Capital Agency [View article]
    I, too, agree with kingdad, particularly since the Fed announcement that they weren't interested or capable of changing Fed interest rates or were they proposing any magical fixes.
    I, too, see the EU money coming to the US for investment and security.
    As to Seniors and retirees I can only say, don't get over your heads. Reits are money makers but ARE NOT the rock solid aristocrats you maybe use too. Investigate and understand what you are getting into; get advice from people who understand the comings and goings of these sometimes very volitional instruments. Proceed with caution, get your feet wet before you jump in deep. Reits swings are high and wide, and can be a scary ride until you get used to it.
    A smaller mouth, only 75k in this sector.
    Aug 3, 2012. 03:13 PM | Likes Like |Link to Comment
  • The Future Price Of American Capital Agency [View article]
    I agree, this is a excellent analysis of several scenarios. I have been long in AGNC since 2010 when I first analyzed them and believe that they had a good business plan and where showing proper restraint after the housing collapse.
    First off, I must qualify that statement by saying that I consider ALL 'reits' very dangerous and must be considered a 'Watch Daily and Handle With Care' item.
    But it has been very good to me and made me a nice bit of money. Yes, I am a dividend seeker, please not a "chaser", due diligence always must be used. I am in favor of what AGNC is doing with their present plan of addition issuance, let it fill in, pay the dividend and issue again. If you will notice they are not having to issue to pay their dividend, they have that money in hand which they have been doing since I have been in them. They are letting the market buyers push them up. To me this is a pure action of let them make us grow.
    Looking also at the other factors in this Growth spurt:
    One, the market is a mess, a bunch of chickens running around with their heads cut off. Europe is an economic nightmare that no one can seem to get under control,
    Two, the USA is in a dither over which party is or is not running the country and which no nothing do nothing will take over.
    Three, the housing market, which the Fed is trying to figure out how to jump start, is not going to raise interest rates until at least after the first of the year, giving a good solid base for AGNC to continue business as usual for at least another couple of quarters.
    Fourth, The people,and they are out there, who have watched and planed ahead are taking advantage of the low interest rates and are buying now, are good solid risks.
    I, moho, think AGNC, is making good solid move to grow their business. I am OK if they believe they need to make a 10 or 15% dividend reduction, the additional stock value will cancel out the drop. I will grin all the way to the bank!
    I qualify the above statement with 'always watch and act with due diligence'.
    Jul 31, 2012. 08:34 PM | Likes Like |Link to Comment
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