American Capital Agency Management Presents at Barclays Americas Select Franchise Conference (Transcript) [View article]
Depends on how they rise. If long term rates rise before short term rates, which seems probable due to the FEDs commitment to low short-term rates, it will offer buying opportunities for any capital that is raised via offering or securities maturing.
If they rise in tandem, they will need to have the correct hedges in place in order to offset losses on market value of securities that are being held.
The larger issue to watch with these highly leveraged REITs is how they manage cash, when they raise capital, and how they hedge and turnover their securities. At the moment, AGNC is very oversold in my opinion... even after you price in a potential drop in dividend to $1/share which would offer a 14.5% yield at $27.50.
American Capital Mortgage Investment Corp Posts The Worst Quarter In Its Short History [View article]
@7of9 : They (AGNC) are purchasing swaps to hedge rate moves. From what they have shown, they have also been reducing leverage over the last year or so, which gives them some breathing room.
They own real assets which are all guaranteed by the government. I fail to see how their book value will ever get close to $0.
American Capital Agency Corp.'s Updated Dividend Sustainability Analysis (Through Q1 2013) [View article]
This is a great article, but I fear most retail investors don't have the time to read it, let alone a chance to actually digest it.
The point is, Agency REITs are very confusing comparable to Triple Nets and Brick/Mortar REITs of old. I tend to believe that the FED will stay true to their word on keeping rates low into 2014, and their exit of Operation Twist should help steepen the yield curve. In the long run, this will favor Agency plays as long as short term rates remain low.
It appears 30-yr rates are beginning to rise after sustaining a pretty stellar drop in April. This could provide buying opportunities for any cash raised by AGNC via equity sales or preferred offerings (if AGNC chooses to do another). If you bought AGNC in early 2012 or before then, you have the ability to remain patient. Those who bought in Q3 2012 should remain cautious.
A Worrisome Pattern Of Recent Market Corrections [View article]
All I hear is fearmongering. This is not 2008. We always have a major pullback during the year, and I've been expecting one since mid-late February. Take profits where you can and keep it in cash until the Spring/Summer doldrums clear out.
My largest worry is the broad cuts to government spending. We could witness a reaction similar to 1937/38 when our government turned to austerity too soon after the depression. My hopes are that our "new age of industrialism" (i.e. energy manufacturing/exporting) and corporate cash will soften the blow this time around.
How you can say Apple is more risky than Samsung is pretty ridiculous. Apple has ridiculous margins, a ton of cash, and 0 debt. The same cannot be said about Samsung.
@blackberryxyz I think you are confusing the term "fundamentals" with "technicals."
Slight margin compression is to be expected with higher competition and new production runs. Apple still has the best margins comparable to their competition and they are still growing revenues and profits. At their size that is incredible. Fundamentally (I don't think that means what you think it means), they are ridiculously strong. All it would take for them to increase their margins would be to borrow short term debt at a low rate they could easily pay off... but they prefer not to add debt to their balance sheet and that is prudent and understandable considering what can happen in the tech space in a matter of months.
Are Record Outflows From The SPDR Gold ETF Cause For Concern? [View article]
Hannity IS one of the worst journalists on TV. Most of Fox's entire crew are brainless saps reading from the partisan script handed down from the GOP puppet masters. They aren't journalists... they're puppets.
He signed them into law, didn't he? Without action, everything else is rhetoric pandering to party lines. Reagan knew the spending would result in growth. Back to the present: A budget hasn't been passed because of extreme polarization on both sides, but you have to be completely ignorant or just avoiding the truth if you really think it's on the Dems. I'm a moderate, and this GOP class is so ridiculously consumed with an ideology that has been proven incorrect throughout history, that there is no chance of compromise.
There are plenty of moronic Dems, but the blame lies mainly on the obstruction of the GOP as far as most of our fiscal issues are concerned. We are getting paid to borrow right now, spending should not be a worry in the short-term. Long-term, yes, we have a debt problem, but growth will solve that problem. The CBO is already projecting deficits as low as $600 billion by next year under current conditions of growth. If growth picks up, that number shrinks, and then we can really get to cutting spending as it will have less negative consequences.
You still didn't answer to my point that these deficits began under a complete GOP majority during GWB (which made sense until the '01 recession was over). They never corrected the ship, and cut taxes while starting a war... the only time in history that's happened and for good reason. It's not fiscally responsible. Not to mention they lied to the public in order to gain support for the wars and strip our civil rights (Patriot Act).
3D Systems: Bright Future, Dangerous Present [View article]
They may have been forced to buy due to an ETF's sector/asset class. Vanguard is not the company you want to follow for purchases of hot stocks. They make many purchases/sells due to simply rebalancing an ETF.
Alright, so I guess the GOP majority House is running the current deficit? I guess the deficits ran up during GWB and the GOP majority weren't the fault of the GOP, either? The POTUS signs the budget into law (if there is a budget). Reagan never went against the proposed budgets.
Typical Republican talking point... if a GOP POTUS is in office, blame congress, when they aren't, blame the POTUS.
@Evan.prospect Tell me how Reagan wasn't Keynesian... considering he tripled our deficit and raised taxes multiple times. He is the definition of a military Keynesian.
American Capital Agency: Time To Abandon Ship? [View article]
The bleeding will need to stop soon or the bears and shorts will control this for the short-mid term.
American Capital Agency Management Presents at Barclays Americas Select Franchise Conference (Transcript) [View article]
If they rise in tandem, they will need to have the correct hedges in place in order to offset losses on market value of securities that are being held.
The larger issue to watch with these highly leveraged REITs is how they manage cash, when they raise capital, and how they hedge and turnover their securities. At the moment, AGNC is very oversold in my opinion... even after you price in a potential drop in dividend to $1/share which would offer a 14.5% yield at $27.50.
American Capital Mortgage Investment Corp Posts The Worst Quarter In Its Short History [View article]
American Capital Mortgage Investment Corp Posts The Worst Quarter In Its Short History [View article]
They own real assets which are all guaranteed by the government. I fail to see how their book value will ever get close to $0.
American Capital Agency Corp.'s Updated Dividend Sustainability Analysis (Through Q1 2013) [View article]
The point is, Agency REITs are very confusing comparable to Triple Nets and Brick/Mortar REITs of old. I tend to believe that the FED will stay true to their word on keeping rates low into 2014, and their exit of Operation Twist should help steepen the yield curve. In the long run, this will favor Agency plays as long as short term rates remain low.
It appears 30-yr rates are beginning to rise after sustaining a pretty stellar drop in April. This could provide buying opportunities for any cash raised by AGNC via equity sales or preferred offerings (if AGNC chooses to do another). If you bought AGNC in early 2012 or before then, you have the ability to remain patient. Those who bought in Q3 2012 should remain cautious.
A Worrisome Pattern Of Recent Market Corrections [View article]
My largest worry is the broad cuts to government spending. We could witness a reaction similar to 1937/38 when our government turned to austerity too soon after the depression. My hopes are that our "new age of industrialism" (i.e. energy manufacturing/exporting) and corporate cash will soften the blow this time around.
Arch Rivals: Samsung Vs. Apple [View article]
Apple: Too Cheap To Ignore? [View article]
Slight margin compression is to be expected with higher competition and new production runs. Apple still has the best margins comparable to their competition and they are still growing revenues and profits. At their size that is incredible. Fundamentally (I don't think that means what you think it means), they are ridiculously strong. All it would take for them to increase their margins would be to borrow short term debt at a low rate they could easily pay off... but they prefer not to add debt to their balance sheet and that is prudent and understandable considering what can happen in the tech space in a matter of months.
Are Record Outflows From The SPDR Gold ETF Cause For Concern? [View article]
3D Systems' Earnings Looked Good To The Shorts [View article]
3D Systems Reports 2012 Results [View article]
Got Gold (As In GLD)? [View article]
There are plenty of moronic Dems, but the blame lies mainly on the obstruction of the GOP as far as most of our fiscal issues are concerned. We are getting paid to borrow right now, spending should not be a worry in the short-term. Long-term, yes, we have a debt problem, but growth will solve that problem. The CBO is already projecting deficits as low as $600 billion by next year under current conditions of growth. If growth picks up, that number shrinks, and then we can really get to cutting spending as it will have less negative consequences.
You still didn't answer to my point that these deficits began under a complete GOP majority during GWB (which made sense until the '01 recession was over). They never corrected the ship, and cut taxes while starting a war... the only time in history that's happened and for good reason. It's not fiscally responsible. Not to mention they lied to the public in order to gain support for the wars and strip our civil rights (Patriot Act).
3D Systems: Bright Future, Dangerous Present [View article]
Got Gold (As In GLD)? [View article]
Typical Republican talking point... if a GOP POTUS is in office, blame congress, when they aren't, blame the POTUS.
Got Gold (As In GLD)? [View article]