tag:blogger.com,1999:blog-726517614184169426.post3181524192919349814..comments2023-08-23T04:15:41.751-05:00Comments on The Jaded Consumer: AGNC's Offering Raises NAVJaded Consumerhttp://www.blogger.com/profile/04631410690179296528noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-726517614184169426.post-29502833700743554152011-08-03T20:02:41.345-05:002011-08-03T20:02:41.345-05:00Jaded:
Thanks for sharing your knowledge regardin...Jaded:<br /><br />Thanks for sharing your knowledge regarding ACAS. It's been very helpful.<br /><br />MikeAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-726517614184169426.post-91191471909836659592011-04-25T19:10:12.167-05:002011-04-25T19:10:12.167-05:001.25% per year on $450m, divided across the 341m s...1.25% per year on $450m, divided across the 341m shares ACAS had outstanding at the end of 3Q2010 would result in $5.625m/year or 1.6¢/sh/year, right? Quarterly, nearly half a penny per share. And if it's successful, ACAS would cause the company to issue still more shares, growing that revenue ...<br /><br />It'll be interesting to see how an IPO for a <i>non-</i>government-backed mortgage product is accepted. Presumably, ACAS expects to use its expertise in valuing illiquid assets to identify under-priced investments. The case for capital appreciation should be better than in AGNC, but let's face it: without the government guarantee, this will be volatile and potentially a rough ride.<br /><br />Of course, if the economy improves and the assets do better than expected because the loans perform closer to nominal than to predicted/feared by the markets, the returns could be exciting.<br /><br />The extra pennies will be good to see, particularly once ACAS is again obligated to pay a dividend.Jaded Consumerhttps://www.blogger.com/profile/04631410690179296528noreply@blogger.comtag:blogger.com,1999:blog-726517614184169426.post-2034334063334384052011-04-25T11:30:41.379-05:002011-04-25T11:30:41.379-05:00http://online.wsj.com/article/BT-CO-20110401-70446...http://online.wsj.com/article/BT-CO-20110401-704466.html<br /><br />Should this IPO go off as expected, ACAS will get 1.25% of approx $450 million. Another $5.6 million in added fee income yearly or about a penny and a half per share per quarter. <br /><br />Added to the most recent AGNC issuance and we are talking about .34 cents a year additional fee income for ACAS right around the corner. A nice cushion for ACAS, as the portfolio exits are non linear. <br /><br />The moving parts with this company seem to be worth well more that the price of the shares indicate.Anonymousnoreply@blogger.com