Tax Reform in This Election Year: It's Not Likely
Which Credit Card Rewards Does the IRS Care About?Without a doubt, I picked the worst possible time to buy MFA Mortgage (NYSE: MFA). Not long ago, I wrote about my desire to get in on MFA. Well, I did. And now I am paying for it, it seems.
I made a few buys between $7 and $10, starting at the high end of the range and then working down. Today, MFA got hit again; as I write this, it's trading around $6 (the low for the day so far is $5.96). My portfolio is certainly getting bloodier.
The mortgage REIT sector is having a tough time because of analyst price-target reductions and falling book values. Annaly Capital (NYSE: NLY) and Anworth Mortgage (NYSE: ANH) are feeling the heat. MFA also has been doing some reduction in terms of leverage, as this recent press release tells us. I'll be following the mnREIT story. For now, though, I'm not selling, and I think MFA is, as Merrill Ross, an analyst at Friedman Billings Ramsey, states, rather cheap at the moment (I know, I know, it can just get cheaper, can't it...).
Disclosure: Steven Mallas owns shares of MFA common and MFA preferred shares; positions can change at any time.
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Reader Comments (Page 1 of 1)
3-13-2008 @ 6:01PM
phillip said...
Stephen, I'm sorry you bought this stock. If you had just invested with us buying single-family, foreclosed real estate, you could have made $30-50k in equity, plus a 15-30% cash flow yield, plus tax benefits!
I'm still amazed how people buy stocks and hope it goes up, when you could buy real estate and make money as soon as you buy!
Phillip
http://www.mylifechanger.com
3-15-2008 @ 2:06AM
sgrm1 said...
mfa will be fine as fed eases and u sell when u feel they will raise this dip is a good reset i am long so view may be colored just gaot back in at 7 out at 9