Opinions
Dennis Mitchell, CFA
Armour Residential REIT
ARR-N
DON'T BUY
Mar 11, 2013
$6.750
Stock price when the opinion was issued
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Around 14% is pretty typical yield for mortgage REITs. This owns Agency Mortgage REITs, both fixed and adjustable rates. If you look through the results of the capital raise they did recently, it was dilutive, so their book value per share was about $7 which dropped to $6.70-$6.80. He doesn’t like to see this. Core earnings equate to a 12.5% on ROE and their distribution yield is 14%, which tells you they can’t cover their distribution.