Kinabalu

AmREITs on Fire: Prelude or Crescendo?

Nice to note the advantage over the S&P 500 since June, 2009 (total return for AGNC of 34%). These companies have been great bets for far longer than that however. I've been telling everyone I know about this great sector since last September, 2008, and in that time period AGNC is up about 90%, with dividends in cash not DRIP.

Cramer's Stop Trading! Commercial Real Estate Is Rescued (9/16/09)

"While many investors are buying Annaly Capital and Capstead Mortgage on the news, Cramer prefers IYR, in spite of the fact it is heavily shorted."

Any investors buying Annaly or Capstead on this news are sadly misinformed as both of those companies invest only in securities already guaranteed by Government Sponsored Entities and would get no additional benefit from foreclosure reduction.

Two Unique Approaches to Real Estate Investing

CMO invests only in residential mortgage securities guaranteed by government sponsored entities, so there is no commercial real estate exposure or credit risk. The risks are interest rate risk and prepayment risk.


On Jul 20 09:25 PM User 450080 wrote:

> Not bad suggestions for a long-term investor. But I would caution
> anyone who is looking for a high yield return that when commercial
> real estate crumbles (and it will) the economy may take another nose
> dive, so there really is no guarantee that the yield will remain
> at the current levels. The author did point out that the dividends
> may vary, so I am only trying to emphasize the risk involved. <br/>
>
> But, again, over the longer term, both investments make great sense
> intuitively. I like to define long term a little more stringently
> today as near a decade. Since there is a real possiblity of further
> damage to the economy near term there is also the real possibility
> that any recovery may take much longer than many pundits expect.
> Take appropriate precautions with your money.

9 New High Candidates

CMO earnings in first qtr were $0.58 versus dividend of $0.56, in line with REIT requirement to payout at least 90% of earnings. Financings spreads, the key indicator for GSE mortgage REITs, increased to 216 basis points in the first quarter versus 117 bp in the fourth qtr of last year.


On May 20 07:48 AM doubleguns wrote:

> CMO with a $1.98 earnings cant support the dividend. Don't count
> on that dividend to hold up.
>
> If they are in commercial mortgages don't count on the stock price
> to hold up over the coming expected correction in this market either.