Looking at the universe of stocks we cover at dividend channel, in trading on wednesday, shares of cys investments, inc. We seek to achieve this objective by investing on a leveraged basis in residential mortgage passthrough securities for which the principal and interest payments are guaranteed by the federal national mortgage association, or fannie mae, the federal home loan mortgage. Cys is a reit that invests in agency mortgages collateralized by fixedrate mortgages, adjustablerate mortgages, and hybrid adjustablerate mortgages. Both experienced pressure on their book values due to the prevailing rising rates. Heres why cys investments stock is up 10% today the motley. Cys cys today announced the final exchange ratio for the previously announced proposed merger between two harbors and cys. Cys were yielding above the 14% mark based on its quarterly. Should value investors pick cys investments cys stock. The book value is essentially the tangible accounting value of a firm compared. While ive been concerned about book values declining and discounts to book value shrinking, i see cys mreits.
Apr 26, 2018 meaningful premium to cys stockholders. Aug 29, 20 this is despite the fact that cys investments was one of the worst performers during the prior quarter after it reported one of the highest book value declines among mreits that buy government. The ratio is a staple for value investors, but does it deserve all the fanfare. Learn the impact a book value or the priceto book pb ratio on a business and if low book value is a good investment. Investing in mreits in a time of rising rates smarter investing. The requested symbol was not found in our database. In other words, cys investments holds a leveraged portfolio of bonds that we view as expensive, just as interest rates are starting to move.
Cys is a specialty finance company that was created with the objective of achieving consistent riskadjusted investment income. Sep 07, 2017 the decline in rates and the flattening of the yield curve should position companies with shorter duration hedges and more interest rate risk to have better book value performance. The stock portion of the deal says that cys shareholders will receive two harbors shares at an exchange ratio to be determined by dividing 96. Cys fundamental charts price to book value fundamental charts the style scores are a complementary set of indicators. The number of two harbors shares issued will be based on an exchange ratio to be determined by dividing 96. Heres why cys investments stock is up 10% today nasdaq. Also reinforcing this benign outlook for q3, efc and cys investments have already reported book values which were. Investors are undervaluing cys investments inc cys by 43%. We estimate that agency mortgage reit book values will decline 0% to 2% on the back of strong performance in the first half of 2014.
Get breaking news and analysis on cys investments, inc. The stock and cash deal would value cys investments nyse. This increase was driven by an decrease in shareholders. What does the dividend hike for this agency mreit mean. Book value is the total value of a business assets found on its balance sheet, and represents the value of all assets if liquidated. Oct 17, 20 cys is a reit that invests in agency mortgages collateralized by fixedrate mortgages, adjustablerate mortgages, and hybrid adjustablerate mortgages. It invests on a leveraged basis in the residential mortgage passthrough. Book value preservation and growth is central to this objective. We seek to achieve this objective by investing on a leveraged basis in. Book value of an asset is the value at which the asset is carried on a balance sheet and calculated by taking the cost of an asset minus the accumulated depreciation. Cys investments solid sequential book value increase is a confidence booster and raises expectations, that other mortgage reits will also be able to deliver book value growth and maintain their. A missing dust jacket, or a dust jacket that is in poor condition, can cut a collectible books value more than 50%, and make it harder to find a buyer.
Cys investments reports a small drop in book value per. Sep 18, 2017 if you are reading this and its not september 2017 then i highly recommend you check out the latest calculation for cys investments by following the link below. Two harbors investment, cys investments close merger. Investment announces definitive agreement to acquire cys investments. Price to book value is a valuation ratio that is measured by stock price book value per share. Heres why cys investments stock is up 10% today the motley fool. Two harbors investment corp two harbors investment corp. Cys investments has a fairly simple policy of investing in residential mortgage backed securities that have the governments backing agency mbs. In other words, cys investments holds a leveraged portfolio of bonds that we view as expensive, just as interest rates are starting to move higher. New york, july 20, 2018 two harbors investment corp. The dust jacket is both the most decorative part of a book, and the most delicate. Adjusted book values financial definition of adjusted book values.
Two harbors investment two to acquire cys investments cys. The number of shares of two harbors common stock to be issued in the merger is based on an exchange ratio determined by dividing i cys adjusted book value per share, multiplied by 96. Apr 26, 2018 announces definitive agreement to acquire cys investments, inc. Apr 18, 2018 it also uses significant debt to finance its holdings. Two harbors investment estimates book value down about 16% in q1, through. Most hard cover books published since the early 20th century were sold with a dust jacket. Cys investments is a specialty finance company classified as a real estate investment trust. Financial shares highlight this occurred even after the feds balance sheet normalization plan announcement, due to. It invests on a leveraged basis in the residential mortgage passthrough securities for which the principal and interest payments are guaranteed by the federal national mortgage association, the federal home loan mortgage corporation, the government national mortgage. Reinforcing this benign outlook for q3, efc and cys investments cys reported q3 book values which were essentially flat with q2. View cyss stock price, price target, dividend, earnings, financials, forecast, insider. Book value represents a reasonable proxy for intrinsic value largely. Free forex prices, toplists, indices and lots more. We also expect material degradation in agency mortgage reit book values, along with marginal dividend reductions due to the flattening yield curve.
Cys investments passes through 14% yield mark forbes. Brieftwo harbors investment announces definitive agreement. As noted previously, book value is not impacted by changes in the nav as the markets move up and down. If you are reading this and its not september 2017 then i highly recommend you check out the latest calculation for cys investments by following the link below. Investing in mreits in a time of rising rates fox business. Oct 09, 2014 we estimate that agency mortgage reit book values will decline 0% to 2% on the back of strong performance in the first half of 2014. Two harbors quarterly book values have been adjusted for each quarter from q1 20 forward. This is despite the fact that cys investments was one of the worst performers during the prior quarter after it reported one of the highest book value declines among mreits that buy. Cys stock, price quote and chart, trading and investing tools. As cys investments is a financial institutions we need to calculate the intrinsic value slightly differently. Apr 26, 2018 the stock portion of the deal says that cys shareholders will receive two harbors shares at an exchange ratio to be determined by dividing 96. Announces definitive agreement to acquire cys investments, inc. How did cys investments boost book value per share.
It invests on a leveraged basis in the residential mortgage pass. Sec filing quarterly report 10q april 27, 2018 sec filings apr. It also uses significant debt to finance its holdings. While ive been concerned about book values declining and discounts to book value shrinking, i see cys mreits having a bit of a. Cys investments book value per share holds steady in q3. Try searching for some other symbol on yahoo finance. Cys investments stock soars after buyout deal with fellow reit two. Jun 17, 20 cys investments has a fairly simple policy of investing in residential mortgage backed securities that have the governments backing agency mbs. Looking for online definition of cys or what cys stands for. Cys and capstead mortgage have disclosed their performances so far. The decline in rates and the flattening of the yield curve should position companies with shorter duration hedges and more interest rate risk to have better book value performance.
There was some intraquarter interestrate volatility with. In other words, cys investments holds a leveraged portfolio of bonds. While they only had small book value losses, the rest of their quarterly announcements were disappointing, shaking the sector yet again. The fly blog two harbors to acquire cys investments in cash. In depth view into cys investments tangible book per share explanation, calculation, historical data and more. The reason for the pop in cys investments stock price is due to the. Cys issued its quarterly earnings data on wednesday, april, 25th. There was some intraquarter interestrate volatility with the.
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