Top Life Sciences Companies To Buy For 2015

Top Life Sciences Companies To Buy For 2015: Invesco Mortgage Capital Inc (IVR)

Invesco Mortgage Capital Inc., incorporated in June 2008, is a real estate investment trust (REIT). The Company is primarily focused on investing in, financing and managing residential and commercial mortgage-backed securities and mortgage loans, which it collectively refers to as its target assets. The Company's target assets consist of residential mortgage-backed securities (RMBS) for which the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) or a federally chartered corporation, such as the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac) guarantees payments of principal and interest on the securities. It refers to these securities as Agency RMBS. Its Agency RMBS investments include mortgage pass-through securities and may include collateralized mortgage obligations (CMOs). It also invests in RMBS that are not issued or guaranteed by the United States Govern ment agency (non-Agency RMBS), commercial mortgage-backed securities (CMBS) and residential and commercial mortgage loans.

The Company finances its Agency RMBS, non-Agency RMBS and CMBS investments through short-term borrowings structured as repurchase agreements. The Company's manager is Invesco Advisors Inc. The Company also finances its investments in certain non-Agency RMBS, CMBS and residential and commercial mortgage loans by contributing capital to the Invesco Mortgage Recovery Feeder Fund (Invesco IMRF Fund) that invests in public-private investment funds (PPIF) managed by the Company's manager. The Company's manager is a wholly owned subsidiary of Invesco Ltd.

Advisors' Opinion:

• [By Amanda Alix]

  All mREITs are taking it on the chin
  The agency crew, led by heavy hitters Annaly Capital (NYSE: ! NLY  ) , American Capital Agency (NASDAQ: AGNC  ) , and Armour Residential (NYSE: ARR  ) , have all been close to hitting 52-week lows, but the blood-letting hasn't stopped there. Even hybrid mortgage REITs, which also buy some non-agency paper, have plunged, as well. Two Harbors (NYSE: TWO  ) , which enjoyed such a nice lift post-earnings about a month ago, recently sunk to new lows, and Invesco Mortgage Capital (NYSE: IVR  ) has also slipped, even after its CIO's recent show of faith, making a sizable insider purchase of stock less than two weeks ago.

• [By Amanda Alix]

  Analysts at odds over mREITs
  Financial analysts have been busy noting the underperformance of mREITs lately, especially since the Fed dropped the QE3 taper bombshell almost two weeks ago -- immediately igniting fears of rising interest rates, which would decrease the value of the trusts' legacy assets, thus dinging book values. The pain hasn't been limited to the stocks mentioned above,  as CYS Investments (NYSE: CYS  ) , and even hybrids like Invesco (NYSE: IVR  ) , have been on a roller-coaster ride ever since.

• [By Sean Williams]

  In contrast, non-agency mREITs often have to be more careful with their leverage since loan defaults actively impact their bottom-line profit, and rapidly rising interest rates, such as what we saw over the past few weeks, can trigger MBS and other security sales at a loss. In return for more risk, non-agency securities pay out higher yields. Take, for example, Invesco Mortgage Capital (NYSE: IVR  ) , a buyer of agency and non-agency RMBSes, which delivered what might seem like an uninspiring 1.64% net interest margin in the first quarter with a leverage ratio of 6.4. Now compare that to agency-only mREIT Annaly Capital, whose net interest margin fell 80 basis points from the year-ago period in the first quarter to just 0.91%, but with a higher leverage ratio of 6.6.

[By Monica Wolfe]

Invesco Mortgage Capital (IVR)

President and CEO of Invesco Richard King reported a rather notable insider buy on Aug. 5. The CEO purchased 6,500 shares of company stock at an average price of $15.41 per share. This purchase cost King a total of $100,165. Since this buy, the share price has increased a minor 0.13%. King now holds on to at least 56,545 shares of Invesco Mortgage stock.

source from Top Stocks For 2015:http://www.topstocksblog.com/top-life-sciences-companies-to-buy-for-2015.html