Thanks for the feedback to my request from yesterday. I found a fearsome foursome that benefits from the same thought process as my new long position in Thornburg Mortgage (TMA) - mortgage REITs. We have four names here, led by one Cramer has been touting for a long time Annaly Capital Management (NLY). 3 others that share the space are: MFA Mortgage Investments (MFA), Capstead Mortgage (CMO), and Anworth Mortgage (ANH).
I am not that familiar with this space - have sniffed around Annaly in the past but I need to do more homework before jumping in. So instead, for now, I added a bit more to the Thornburg Mortgage position today (talk about strength in a shoddy market). But the charts of these 4 mortgage REITs are flying; I just posted 1 to the blog - the other 3 look identical. What I don't know and need to assess is if we missed the meat of the move (they've all had huge moves) or if (as I theorize) Fed Funds are going to 2% (or lower), we can continue to find profits for a much longer period - trends tend to stay in place for far longer than we anticipate so this could be the beginning of a much larger move (or not).
What is amazing is almost all these companies are raising capital (selling new shares) yet the stocks continue to march up. And they continued UP through the hell that was January. Now that's a bull market (and relative strength).
More to come....
6 comments:
Gary Gordon had a write up on this topic. http://www.etfexpert.com/etf_expert/2008/02/worst-of-2007-s.html
Mark,
CIM is another interesting name in this area that I am looking at. Heard a lot good about these guys but don't understand their business model yet.
Work in progress on CIM,
AJ
More about CIM at -
http://www.chimerareit.com/
Thanks. Still digging myself into the sustainability. But on days when people buy trashed financials no matter what, I guess it doesn't matter much as thats what the "playbook" says to do.
I'm new to investing and I think blog like yours is a tremendous help!! I have been watching TMA since for a while and had a small position. Now I feel comfortable and invested 35% of my portfolio. Fingers crossed..
Here is another RWT - Redwood Trust
and even an ETF for the group, gotta love iShares REM
http://www.ishares.com/product_info/fund/overview/REM.htm
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