Capstead Mortgage Corp (CMO)

magicrealm (68.22) Submitted: 4/12/07 11:05 PM : Start Price: $8.13 CMO Score: 49.72

With the the Feds more likely to hold interest rates constant (if not decrease them) for the rest of this year and into 2008, CMO's interest spread margin is bound to increase as its cost of borrowing, which positively correlates with the Fed's Fund Rate, stays constant (or decrease) and its adjusted rate mortgage investments resets higher to recent rates. All this equates to increasing profits and increasing dividends in the coming quarters along with rising stock price to reflect the realization of the profitability trend.

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