Published Thu, 19 Mar 2020 07:00:00 -0400 on Seeking Alpha
The market has everyone scrambling.
We’ve continually been able to find deals that are outperforming the market.
We believe preferred shares are offering some of the best deals out there right now.
This research report was produced by The REIT Forum with assistance from Big Dog Investments.
It has been a very hectic week for preferred shares and Friday was no exception.
Friday and Thursday were the two most exciting days of the week. On Thursday, the entire sector plunged. On Friday, many of the shares bounced back, but a few declined even further.
For investors who are concerned that they may be missing something “the market” understands, Friday’s charts should ease your mind.
A quick note to readers
We are working seven days a week trying to cover everything going on for The REIT Forum. We also are trying to get enough material out to the public. Even though the market is continuing to see record-level volatility, we will continue to bring you our thoughts on the market as this all unfolds. We appreciate your patience as we are constantly adjusting for the absurd volatility in intraday share prices.
Irrational Market in Friday’s Chart
If mortgage REITs are all doomed, as Thursday’s market price predicted, how can the preferred shares soar like this on Friday?
Source: The REIT Forum
Now a reasonable investor who still wants to believe that the market is being efficient could argue:
“A major threat might have cleared up Thursday evening or during the day on Friday!”
Allow the market to reject that notion. The first chart covered preferred shares which rallied by more than 4%. The next chart is preferred shares which rallied less than 4%:
Source: The REIT Forum
There’s not a reasonable argument for claiming that the market was efficient Thursday and efficient Friday. Looking at the relative changes, it's very hard to argue that the market was remotely efficient.
To contrast... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|CHERRY HILL MORTGAGE INVESTMENT||13.52||0.0||-3.91||1.60||14.40|
|ANNALY CAPITAL MANAGEMENT||8.60||0.0||-3.32||1.20||14.00|
|ANWORTH MORTGAGE ASSET||3.39||0.0||-0.98||0.44||13.17|
|NEW YORK MORTGAGE TRUST||6.14||12.0||0.51||0.80||12.74|
|AMERICAN CAPITAL AGENCY||15.64||0.0||-1.54||1.92||12.21|
|TWO HARBORS INVESTMENT||13.28||0.0||-2.81||1.60||12.02|
|INVESCO MORTGAGE CAPITAL||15.18||0.0||-1.01||1.80||11.80|
Older articles featuring Cherry Hill Mortgage Investment (CHMI):Dividend Yields Up To 40% - Yeah It Happened
Annaly Capital's BV, Dividend, And Valuation Versus 20 mREIT Peers (Post Q4 2019 Earnings - Attractive Valuation)
2020: The Annual 'Shock And Awe' Truth Between Cost And Dividends From A 100% High-Yield Portfolio
AGNC Investment's Q4 2019 Income Statement And Earnings Projection - Part 2 (Includes Dividend Sustainability Metric)
Annaly Capital's Dividend, BV, And Valuation Vs. 20 mREIT Peers - Part 2 (Includes Q1 2020 Dividend Projection)
11.3% Yield Buy Brought To You Buy Anworth Mortgage
10% Yield: Why I 'Sleep Well At Night' With A 100% High-Yield Portfolio - Part 2
10% Yield; Why I 'Sleep Well At Night' With A 100% High Yield Portfolio
50 Top U.S. REITs By Gains And Yield Per November 7 Broker Targets
Detailed Assessment Of AGNC Investment's Results For Q3 2019 (Includes November 2019-January 2020 Dividend Projection)