Pricey Javelin Mortgage sells off after earnings

|About: Javelin Mortgage Investment (JMI)|By:, SA News Editor

Hardest hit in the mREIT sector today is Javelin Mortgage (JMI -5.3%) after reporting core EPS of $0.45, down from $0.54 in Q3, but inline with the current monthly payout of $0.15.

Book value per share fell to $14.28 from $14.69 at the end of Q3 (if you add the dividend back, it actually rose a few pennies), leaving the stock (before today's decline) trading at a premium to book. Net interest margin of 1.78% gained six basis points with CPR falling to 4% from 5.4%.

Leverage declines to 4.9:1 from 6.48:1 as the agency portfolio falls to $802M from $1.3B and the non-agency to $284.3M from $267.2M.

1.5M shares repurchased at average price of $12.72 each during Q4, leaving about 12M shares outstanding.

The company previously announced a boost in the buyback authorization to 3M shares.