10 Best Building Product Stocks For 2015

10 Best Building Product Stocks For 2015: CYS Investments Inc (CYS)

CYS Investments, Inc. is a specialty finance company created with the objective of achieving consistent risk-adjusted investment income. The Company invests in Agency residential mortgage-backed securities (RMBS) collateralized by fixed rate single-family residential mortgage loans (typically 15, 20 or 30 years), adjustable-rate mortgage loans (ARMs), which typically have coupon rates that reset monthly, or hybrid ARMs, which typically have a coupon rate that is fixed for an initial period (typically three, five, seven or 10 years) and thereafter resets at regular intervals. In addition, its investment guidelines permit investments in collateralized mortgage obligations issued by a government agency or government-sponsored entity that are collateralized by Agency RMBS (CMOs), although the Company had not invested in any CMOs as of December 31, 2011.

The Company finances its Agency RMBS investments using a diversified approach involving repurchase agreements w ith multiple commercial and investment banks. Agency RMBS are residential mortgage pass-through securities, the principal and interest of which are guaranteed by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) or the Government National Mortgage Association (Ginnie Mae). Its portfolio of Agency RMBS is backed by fixed rate mortgages and hybrid ARMs that typically have a fixed coupon for three, five or seven years, and then pay an adjustable coupon that generally resets annually over a predetermined interest rate index. As of December 31, 2011, its Agency RMBS portfolio consisted of 10 Year Fixed Rate, 15 Year Fixed Rate, 20 Year Fixed Rate, 30 Year Fixed Rate and Hybrid ARMs. On September 1, 2011, the Company acquired certain assets and entered into agreements to internalize its management (the Internalization).

Advisors' Opinion:

• [By Dan Caplinger]

  On Wednesda! y, CYS Investments (NYSE: CYS  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed kneejerk reaction to news that turns out to be exactly the wrong move.

• [By Dan Caplinger]

  The big question for American Capital Agency will be whether its hedging program helps it avoid big losses. CYS Investments (NYSE: CYS  ) reported a big loss last week, with its book value taking a large hit because of hedging practices that didn't work as well as CEO Kevin Grant would have liked. If its hedges work, then American Capital Agency earnings could give investors a nice surprise next week, forestalling any need for further dividend cuts -- at least for now.

• [By Amanda Alix]

  A common affliction for mREITs these days
  As mortgage REIT fans well know, contracting spreads have been a real bugaboo for the industry lately as the Federal Reserve continues on with its bond-buying spree. For pure-agency players like Annaly, American Capital Agency (NASDAQ: AGNC  ) , and CYS Investments (NYSE: CYS  ) , the effects have been especially harrowing, since the Fed buys only securities guaranteed by Fannie and Freddie in its effort to prop up the economy and goose employment.

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/10-best-building-product-stocks-for-2015.html