SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Income Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Elroy who wrote (4998)3/19/2013 11:47:55 AM
From: MCsweet1 Recommendation  Read Replies (2) of 52115
 
Re: TWO opportunity? Perhaps. Down .22 this morning. Ken

CYS is invested in agency only. TWO is invested in agency and non-agency and will be looking to invest in mortgage servicing rights (MSRs), which are the servicing fees from current mortgages. Note that comps like NCT that are invested in MSRs trade at much richer valuations. TWO also will be providing SBY spin-off shares to its investors. And finally, I think TWO has better management than CYS.

Despite all these advantages, TWO still seems rich to me on a price-to-book basis (I have estimated book around 12ish pro-forma for capital raise). That being said, it seems like the positive momentum will continue into the upcoming dividends of cash and the SBY stock. Announcements of MSR purchases in the future should give a positive kick to the stock, even though the company is just getting into that business, so the actual impact on earnings will not be meaningful for awhile IMO.

MC
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News