AGNCO - The Flash Sale On Mortgage REITs

• Occasionally we see a sector rotation where prices dip rapidly with no basis in fundamentals.
• When that happens, we see an opportunity to build new positions. We had one of those opportunities very recently. During the flash sale on Thursday, we picked up some DX.
• This is an example of how investors should seek to approach mortgage REITs. Focus on the fundamentals for valuation and compare similar REITs.
• Since DX already rallied and we still want something actionable, let's talk about Two Harbors. It's too expensive. That was quick.
• Don't believe me? Just ask management if they plan to issue 40 million shares. They do. The prospectus was just filed today.

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