MFO - MFA: Management Matters

• MFA faced a very tough 1Q environment and the experienced management team managed through the situation extremely well.
• MFA Financial sells at about 40% below its reported book value. Book value was scrubbed following the 1Q Mortgage REIT debacle and is thus a fair representation of actual equity.
• The company has several other positive catalysts including, scrubbed book value, dividends that need to be paid, a strong housing market, and a strengthened financing structure.
• Upside potential is good here but look for good entry point at or below $2.80 ifpossible.  There are also optionsavailable for downside risk protection and income generation via covered callsales.

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