Summary
- IVR is a name we have followed on and off for many years.
- In late December, our team at BAD BEAT flagged this stock and made a trade on it expecting a rebound.
- The stock looks fairly and fully valued, so you now need to pick your spots.
- This idea was discussed in more depth with members of my private investing community, BAD BEAT Investing. Start your free trial today »
We continued to believe Invesco Mortgage Capital (NYSE:IVR) is improving operationally. The name has had a storied past few years, and we have been bearish, and then bullish, and then neutral. Back in December, shares cratered, and over at BAD BEAT Investing, we captured a short-term trading bounce on the stock. Now, with shares over $16 once again, we believe that the stock is fully valued, and that you should wait for a better price.
There remain fears over rising interest rates but we continue to believe that Invesco Mortgage is a strong pick in the sector for a steady stream of income. But, you should wait until the price is right and over $16 seems fully valued. We say this in consideration of possible impacts of rising interest rates, a flattening yield curve, and the values of the key metrics we utilize to analyze mREITs. Let us discuss.
