I am a long but see the next 6 to 12 months as being a slight decline. The reason for this is the interest earned will decline at a faster percentage than the gain from lower borrowing cost. The dividend will decline by 3 to 5 cents every quarter for the next few quarters. The stock price seems to be trading in a set range (price = yearly div / yield). With the dividend declining at a small amount, the price will drift lower.

The bright spot is the portfolio is advancing but at the cost of equity. Hopefully, management will get some long term financing at these record lows so when interest rates do rise and the ARM's reset to reflect this, the spreads will be fat.

I am curious as to what other members on this board think.