Capstead Mortgage Corp (NYSE:CMO)

dpb2 (60.53) Submitted: 11/26/2007 11:02:52 AM : Start Price: $5.96 CMO Score: +134.49

Well run REIT that will profit from declining interest rates and the inability of homeowners to refi out of accelerating ARMS. The risk is that the mortgages or mortgage backed bonds that they hold will be devalued as foreclosures rise. However, they just raised a significant amount of new capital so something is going right.

drewnealski (< 20) Submitted: 9/19/2007 2:59:03 PM : Start Price: $5.43 CMO Score: -162.71

Mortgage - Housing based DOG

TDRH (99.92) Submitted: 8/10/2007 1:02:27 PM : Start Price: $4.79 CMO Score: -191.38

ARM's

csmith201 (92.14) Submitted: 5/21/2007 3:18:15 PM : Start Price: $5.39 CMO Score: +164.23

Fedes will hold interests steady leading to increase in profits for this company...

magicrealm (< 20) Submitted: 4/12/2007 11:05:07 PM : Start Price: $4.94 CMO Score: +182.46

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.

Luftwasche (21.97) Submitted: 3/5/2007 7:31:40 AM : Start Price: $4.14 CMO Score: +231.24

Rate resets + reinvestment of prepays on the ARM portfolio should lead to huge increases in the dividend by 4Q06

stabfederline (67.39) Submitted: 12/5/2006 3:04:43 AM : Start Price: $4.27 CMO Score: -222.55

Book value's fine but they're borrowing up to their ears.

5STARsmallCAPS (78.14) Submitted: 12/2/2006 4:11:41 PM : Start Price: $4.28 CMO Score: +222.12

5-star $159 million market cap on 12/2/06
Real estate investment trust investing in government issued residential adjustable rate mortgages and also in commercial real estate loans.
5STARsmallCAPS picks five star stocks with the smallest market caps.