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AGNC, dividend reduced, price increases...
2012 Feb 7, 12:53am 6,206 views 5 comments
by swebb follow (0)
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Eman
@
2012 Oct 15, 6:15am
@Swebb,
I graciously bowed out and sold the remaining 700 shares of AGNC and 850 shares of IVR into the close today. It was fun and rewarding while lasted. All party will come to an end, right? Why? I believe their profit margin will get squeezed in the next several quarters, and the aggressive selling in the past week speaks volume. It was great that it bounced off its 200DMA. To me, any bounce is an opportunity to sell, not buy. I hope you can sell at $33.75 to $34 of the bounce this week.
At this point, I'm looking to deploy the money into stocks like T, MO or VZ. I will be doing some homework in the near future. Any stocks that you can recommend? :)
TIA.
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I own a bit of AGNC. I was surprised today at the news and stock price movement.
"American Capital Agency Corp. (AGNC: News ) reported that its fourth-quarter net income increased to $208.71 million from $138.08 million last year. Earnings per share was $0.99 compared to $2.50 prior year.
Net spread income per share for the fourth-quarter of 2011 was $0.98. Comprehensive earnings per share for the quarter increased to $2.27 from $1.23 a year ago.
Net interest income was $262.82 million compared to $76.38 million last year."
I'm not sure how to read this. 4th quarter net income increased significantly (~50%). Earnings per share decreased significantly? (for the quarter, for the year?) Net spread income (what is this?), comprehensive EPS (what is this?) increased significantly compared to Q4 2010. Net interest income increased a bunch.
But the dividend was reduced significantly....and the price went up. I guess the decreased dividend was "priced in", but it caught me off guard, esp considering it has been steady for a long time. Makes me realize how "in the dark" I am. Anyone have any web resources where I could learn what all these things mean?