Posted on 12 June 2012.
The number of homes refinanced under the new and improved Home Affordable Refinance Program (HARP) nearly doubled in the first quarter of 2012. That should benefit mortgage REITS that invest in government guaranteed mortgages, such as AG Mortgage Management (MITT), Hatteras Financial (HTS), American Capital Agency (AGNC), and Annaly Capital Management (NLY).
Stocks from mREITs like these should see a small boost in profits from this news. Even though the volume of refinances under HARP 2.0 has nearly doubled, the number is still very low. Around 180,000 mortgages were refinanced under the program in the first quarter, compared with around 93,000 in the last quarter of 2011.
The number of refinances does seem to be refinancing dramatically – around 80,000 HARP refinances were completed in March. The reason for this increase appears to be new mortgage refinancing software written expressly for HARP. The New York Times reported that the Federal Housing Finance Agency (FHA) only made the program fully available at that time.
These numbers show that the refinancing business is getting a dramatic boost, which should increase the volume of business at mREITs. This should also increase their cash flow and profits. Also increased will be the amounts that those companies can leverage.
The major factor holding the number of HARP refinances down is the requirement that homeowners be current on their mortgage payments. Many underwater homeowners have had a hard time meeting mortgage payments because of the dismal economy.To continue reading, click here.
Posted in Dividend Kings
Posted on 20 March 2012.
Boeing (BA) operates in the aerospace and defense industries. It has grown significantly over the years to become one of the largest aircraft manufacturers in the world. Investors have found Boeing to be an attractive option for returns and growth. In this article, I will analyze the financial aspects and performance indicators of this company which have allowed it to become such a strong contender in the stock market.
Boeing has been showing signs of great stability even during the global financial crisis. Sales and income of the company were growing and the investors were getting high returns. This is basically one of the reasons why I have found Boeing to be a good investment option. There are few stocks which can offer high yields and steady returns to investors even when the global economy is facing problems. The financial highlights from the last year suggest that the company will now move steadily forward once the market stabilizes itself.
Market capitalization at the current price is almost $6 billion and the average trading volume is nearly 5 million shares. There are approximately 746 million shares outstanding in the market. Earnings per share (EPS) are more than $5 while the price-to-earnings (P/E) ratio is above 14. The dividend yield is above 2% and the last dividend paid by the company was 44 cents per share. The dividend yield and the earnings are what basically attracted investors in the stock market. Boeing has announced dividends regularly and returns have been increasing with growth in sales and income. To continue reading, click here.
Posted in Dividend Kings, Featured Posts