With that in mind, let's take a closer look at American Capital Agency and see what CAPS investors are saying about the stock right now.
American Capital Agency facts
Bethesda, Md. (2008)
Chairman/CEO Malon Wilkus
Cash / Debt
$15.6 billion / $80.9 billion
Anworth Mortgage Asset
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 918 members who have rated American Capital Agency believe the stock will outperform the S&P 500 going forward.
Positive:-High yield, low PE, simple business model leveraged to FED stupidity (which is guaranteed)-Recent correction has brought valuation back below tangible book, good entry point
Negative:-Terrible last quarter shows the dangers tied to these REITs but I think they will not be realized in earnest until money printing stops (still more than a year away, if ever)
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The article Why American Capital Agency Is Ready to Rebound originally appeared on Fool.com.
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