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To: Elroy who wrote (109190)	7/18/2012 10:15:07 PM
From: Elroy	Respond to of 118717

The good thing about ARR is - it pays monthly rather than quarterly, so volatility around the dividend is lower - it has already announced a dime a month for July-Aug-Sep (so Q3 dividends will be the same as Q2 rates) - yield is about 16% if they don't cut the dividend The negative about ARR is - they have done lots of secondaries, sometimes 2 in 3 months. - the most recent secondary was announced when ARR was $7.44, so if it's up there again they might as well do another, sort of puts a roof on the share price - they haven't reported Q2 book value yet - it was $6.80 in Q1. So it's at about 1.06x book. The good thing about CYS is - they just did a secondary, so probably won't do one for at least 3 months - they reported preliminary Q2 book value, it was $13.50, so at $1393 CYS is at about 1.03x book, a reasonable price - yield is about 14% if the don't cut the dividend The bad thing about CYS is - they haven't announced the Q3 dividend yet, so you gotta worry about them possibly reducing it since interest spread margins are lower than Q1 and Q2 levels.