REIT stocks such as AGNC, ARR, MTGE, and other dividend stocks are responding to better news on negotiations about the Fiscal cliff.
At 1:20 pm Here are the prices and the book values:
Book value:
AGNC $30.91 32.49
ARR $ 6.79 $7.91
MTGE $24.22 22.08
( non- REIT) Net asset value:
PSEC $10.38 10.88
GNT $14.27 13.42
The FED is bidding up the mortgage backed securities which tends to raise book value of the REITs but interest rates cause pre-payments which reduces earnings. This should cause the stock to hold value despite lower dividends. The stocks may actually go up. I expect PSEC to go up as well, they had a favorable quarterly report.
Insiders have been buying AGNC and ARR stock in the last 2 or 3 days. I think we have seen the bottom of the REIT market.
At 1:20 pm Here are the prices and the book values:
Book value:
AGNC $30.91 32.49
ARR $ 6.79 $7.91
MTGE $24.22 22.08
( non- REIT) Net asset value:
PSEC $10.38 10.88
GNT $14.27 13.42
The FED is bidding up the mortgage backed securities which tends to raise book value of the REITs but interest rates cause pre-payments which reduces earnings. This should cause the stock to hold value despite lower dividends. The stocks may actually go up. I expect PSEC to go up as well, they had a favorable quarterly report.
Insiders have been buying AGNC and ARR stock in the last 2 or 3 days. I think we have seen the bottom of the REIT market.
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