American Capital Agency (NASDAQ:AGNC)

CAPS Rating: 4 out of 5

The company is organized as a real estate investment trust. It uses leverage to invest in single-family residential mortgage pass-through securities and collateralized mortgage obligations that are guaranteed by the U.S. Government.


Player Avatar jsrc1989 (< 20) Submitted: 10/2/2009 10:28:37 AM : Underperform Start Price: $11.89 AGNC Score: +6.73

AGNC is the another creation brought to us by the same management who "over-levered" ACAS in making commercial business loans. While AGNC is based on the same concept as NLY (a real bluechip) this yield on a dividend of $5.60 is scary.
Like NLY for staying power and outstanding long term management.

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Member Avatar Natcon (< 20) Submitted: 12/3/2009 1:53:16 PM
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True, the high dividend is scary, but consider that it represents 90% of earnings, and that the high rate may be the result of an undervalued price. Is the low price a result of investors shying away from the stock, due to its affiliation with ACAS? Lost part of my shirt on the latter, but a bigger portion on C, BAC and WB, the too big to fail.

Member Avatar mapapip (< 20) Submitted: 12/11/2009 7:52:23 PM
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will acas ever come back? i am loaded with it. when it was $26.00, loaded up on it .

Member Avatar LewisWhokeyser (< 20) Submitted: 12/27/2011 12:12:56 PM
Recs: 0

Not only has AGNC beaten NLY by any metric you could name, but they're having a problem with too much retained earnings. They may have to do a special dividend to get rid of the excess.

It's a bit hard to get a feel how AGNC is performing because of their frequent stock offerings, but if you divide Net Asset Value by total shares outstanding, you discover that AGNC NAV/share has increased each year since going public.

Member Avatar rojostyle (94.27) Submitted: 12/31/2012 3:19:29 PM
Recs: 0

this is kinda funny.

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