• nbkkm92
    This selling is comical... so what happens when $AGNC reports 2Q BV of at least $29/sh and substantially wider net interest spread?
    5/28/13
    Reply (11)
    • Chines33: If you are going to predict scenarios, you have to also consider what will happen if they shred the divvy in half?
      5/28/13
    • nbkkm92: So net spread widens, and they have plenty of room to increase leverage, but the div will go to 65 cents? I don't think so.
      5/28/13
    • Chines33: You are assuming they report that and executed better. I'm just saying be careful with assumptions on stocks with outsized divvys
      5/28/13
    • Cash King: Even if they reported divy cut in half which is unlikely it still yields close to 10%. Also would be lowest divy ever for them.
      5/28/13
    • Cash King: Divy cut in half is unlikely to keep REIT status. Huge divy cut unlikely until possibly next year or end of this year.
      5/28/13
    • Chines33: Im not talking immediately cut in half. Just saying keep in mind potentially could eventually go down that much over several quarters.
      5/28/13
    • Chines33: If it doesn't get cut at all great. But they had better execute 1000% better these next few quarters in order to keep from it...
      5/28/13
    • Chines33: Again I have no current position in the stock, I just saying beware of worst case scenarios with high yielders. Always worry noting.
      5/28/13
    • Cash King: Agreed. But, as was mentioned they will take a hit potentially for pricing but longer term will do better with increasing spread.
      5/28/13
    • Cash King: I fail to understand why the market seems to be pricing in armageddon for them. A 50% divy cut and it still yields pretty decent.
      5/28/13
    • Cash King: Debating on adding to my position for a nice YOC now and in the future.
      5/28/13