Yield Chasers Wrecked

Summary

  • It was a predictable catastrophe. So predictable, that we literally predicted it. The evidence is here.
  • The magnitude of the mispricing was hilarious. One mortgage REIT slaughtered their underwriter with superior analysis.
  • I'm still impressed that the underwriters managed to throw away millions by failing at the due diligence that we were able to do so quickly.
  • Looking for a helping hand in the market? Members of The REIT Forum get exclusive ideas and guidance to navigate any climate. Learn More »

Group of business persons talking in the office.

Here's what we do: We issue new shares at $24.2125 while comparable shares trade for about $21.39. Yeah, I actually convinced an underwriter to take this deal for $150 million. He's so fired.

VioletaStoimenova

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Reason for new shares

AGNCL Prospectus

Best dividend analysis on Seeking Alpha

The REIT Forum

Investment Comparison

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Dividends

The REIT Forum

Stock data

AGNCL Prospectus

Price targets

The REIT Forum

Found Alpha on Seeking Alpha

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Investors murdered

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Best analysis on Seeking Alpha

If you still think the market is efficient, you might as well believe in Santa. (The REIT Forum)

Chart showing the performance of the best service on Seeking Alpha compared to four ETFs for dividend investors

The REIT Forum

Our analysis is better than what the underwriters did before risking over $140 million. Might be a good idea to try it. How do you think we kept beating the indexes? Due diligence.

It's not 50% off. We don't do that. Things that are often "50% off" just have an inflated sticker price to convince people they are getting a deal. Great research at a fair price. It's better than poor research at a discounted price.

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This article was written by

Author of The REIT Forum
The #1 REIT Service For Those Targeting Strong Total Returns
You want to be on The REIT Forum because it is the #1 REIT research service on Seeking Alpha measured by returns. Period. See our Tipranks page. How did we get there? We did a better job of managing risk and discovering opportunities. We didn’t jump into trashy high-yield equity REITs with the rest of the crowd. We cover securities for trading and securities for the buy-and-hold investor. We are clear about the difference and that enabled us to perform better since inception and better in 2020.


Securities for the buy-and-hold investor generally carry much lower risk. If we enter a high-risk position, we plan to capitalize on a change in the valuation. We monitor those positions very carefully, rather than hoping everything turns out well over the next several years. That’s why we have so few losses in our investing.


We post our portfolio for you. You also get real-time alerts on every trade we place. Our reasoning for placing a trade is explained in clear English. You can even see the exact trades with the images we include from our stock accounts. We don’t offer you several different “portfolios”, instead, we show you exactly what we own, when we bought it, and how we are doing in that position. We make it simple for investors to follow our strategy.


You’ll find several reports on The REIT Forum that don’t get posted to the public side of Seeking Alpha. Many of our public reports are dramatically reduced versions of subscriber articles. If you enjoy our public articles, you’ll love the content we keep for subscribers.


Disclosure: I/we have a beneficial long position in the shares of AGNCO, CIM-A, ARR-C, DX-C, RITM-D, AGNCP, MFA-C, NYMTZ, NYMTL, MFA-B, PMT-C, RITM, SLRC, AAIC, MFA, GPMT, RC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Colorado Wealth Management Fund and Scott Kennedy are supporting contributors for The REIT Forum. Our ratings and outlooks will often overlap.
Any recommendation posted in this article is not indefinite. We closely monitor all of our positions. We issue Buy and Sell alerts on our recommendations, which are exclusive to our members.
I have an indirect conflict of interest with ABR and STWD. Neither I, nor any contributor for The REIT Forum, will provide investment advice, reply to questions, or engage in discussions regarding these two mREIT stocks.

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