Rss Top Picks FeedRss Daily Feed| Click Here to receive daily reports of the TOP PICKS OR your personal stock choices | STOCKCHASEWhat the experts are saying! |
| There are 7 registered members and 77 guests viewing the site. | Follow us on Twitter | Rss Top Picks Feed | Rss Daily Feed |
|
| BUY | 16.890 | Mike S. Newton, CIM FCSI | They basically own mortgages that have bought off Fannie Mae (FNMA-Q2) and Freddie Mac (FMCC-Q2) and have very good yields. They borrow money at very low costs and then leveraging up and buying mortgages. You have to watch this like a hawk. One thing that is very supportive of this is that interest rates are not going up for 2 years. | 2012-02-01 | |
| Comment | 16.110 | Gavin Graham | A specialized mortgage investment/finance company. They buy good quality mortgages using a spread to leverage and paying that out as a dividend. If you think the US mortgage business is going to continue to chug along, the dividend is probably sustainable. The high dividend is probably a sign that the market is expecting a cut in the dividend. | 2011-12-28 | |
| BUY | 16.610 | Ben Cheng | Yield is quite high because they employ a tremendous amount of leverage. It is typically anywhere from 5X leverage to10 or 12 times leverage. Currently at about 7X. Mortgages they invest in are all backed by the US government. A very decent place to have some money today. Yield of nearly 14%. | 2011-12-20 | |
| Comment | 16.270 | Paul Gardner, CFA | Curious where this sector is going with the Freddie Mac's and Fannie Mae's mortgage REITs and the TWIST program? Federal reserve, instead of doing quantitative easing decided to lend short term and buy long-term to flatten the yield curve. Doesn't necessarily hurt or help this company. Did very well in last year's environment because short-term rates are very low and long-term rates are very high. If you believe the US housing market is going to stabilize (flat line or go up slightly) this company will probably outperform. | 2011-12-05 | |
| DON'T BUY | 17.900 | David Burrows | Invests in mortgages on a leveraged basis. Tends to well in a falling interest rate environment. 15% dividend. Has owned in the past. Not now because lots of talk about trying to force American financing mechanism to the detriment to this company. A very, very well run mortgage REIT. IF you can assess risks, you could own it. | 2011-09-13 | |
| Comment | 17.500 | Sandy McIntyre | There are some risks you need to be aware of on mortgage REITs. Very levered. If there is a flattening of the yield curve, you will run into problems in the “carry” (?). He is not anticipating any increase in short-term rates in the US for 4 years. Obama administration may want to refinance mortgages but he doesn't think it will happen. | 2011-09-07 | |
| TOP PICK | 17.960 | Srikanth Iyer | REIT. Residential mortgages, 14% yield, 7x earnings multiple. ROE of 16%. Mortgages originated in the banks and NLY selectively buys mortgages from the bank. Not all US mortgages are bad. Stock didn’t budge during the recent pull back. Interest rates will be low for a while. | 2011-08-24 | |
| BUY | 18.590 | Paul Harris, CFA | Great yield. They borrow short and lend long. They buy mortgage-backed securities. They pick up that spread. Stock price does not move much. Risk is that short rates go up in the US. There is a re-investment risk where people pay down their mortgages in the fall. X-Div Jun 28. | 2011-06-23 | |
| Comment | 18.070 | Charles Dillingham | Mortgage REIT. Essentially they buy agency residential mortgage backed US securities. You have to watch for any signs of the mortgage market weakening as they work on spreads. Very high risk. | 2011-05-30 | |
| BUY | 18.050 | Dennis Mitchell, CFA | Larger than all its other competitors combined. When he owns this, he usually sells when it hits $17-$19. At this price you will get about a 14%-15% yield. US housing market is still in dire straits and likely to be so for quite a long period of time. | 2011-05-26 | |
| BUY | 18.280 | Paul Harris, CFA | Would look to buy it on the X dividend date. Looking for the stock to move sideways But you can pick up the great yield. | 2010-10-21 | |
| BUY | 17.020 | Paul Harris, CFA | Basically buys mortgages. A risk is if short-term interest rates go up substantially. Also bought mortgages at premiums so the BV of mortgages is higher and people will pay down higher rates first. 15.9% yield. | 2010-08-26 | |
| BUY | 17.590 | Dennis Mitchell, CFA | Mortgage REIT. Essentially they buy agency residential mortgage backed US securities that are levered 6 times. Last quarter and next quarter will be a little rocky because curve is flattening and spread will tighten. Expect stock price to be flat for the next year or so. 15.5% yield | 2010-08-20 | |
| BUY on WEAKNESS | 17.620 | Dennis Mitchell, CFA | Mortgage REIT, which is very unique. Doesn't own commercial real estate but own pools of agency mortgages instead which are residential mortgages that are insured by Freddie Mac, Fannie Mae or Ginny Mae. 15.5% yield. | 2010-07-15 | |
| BUY | 17.250 | Paul Harris, CFA | Involved in mortgages with an interesting method. They fund themselves on the low end of the curve and lend on the high but if rates start to go up in the US they will start to get hurt. Don't take on as many credit risks as people think. High yield. | 2010-04-22 | |
| PAST TOP PICK | 18.270 | Prakash Hariharan | (Top Pick July 3/09, Up 25.5%) Was a play on spreads. Took some profits. | 2009-09-29 | |
| TOP PICK | 16.960 | Prakash Hariharan | Fanny and Freddie Mortgage backed. This is a mortgage REIT. They are making the right noises. The book value of this company could increase nicely. 14% sustainable yield. | 2009-08-18 | |
| TOP PICK | 15.110 | Prakash Hariharan | Mortgaged backed securities. Borrows on the short and then finances agency backed mortgages, mainly AAA types. Have access to very low-cost funding. Effectively they are like a mortgage bank. They can really grow their book value. | 2009-07-03 | |
| SELL | 14.750 | Kevin O'Leary | (Market Call Minute.) Very interesting but very controversial. Total trade in financial services and highly levered. | 2009-01-21 |
