Top 10 Mid Cap Stocks To Own For 2015

Top 10 Mid Cap Stocks To Own For 2015: Two Harbors Investment Corp (TWO)

Two Harbors Investment Corp. (Two Harbors), incorporated on May 21, 2009, operates as a real estate investment trust (REIT). The Company is focused on investing in, financing and managing residential mortgage-backed securities (RMBS), residential mortgage loans, residential real properties, and other financial assets. The Company focuses on security selection and implements a relative value investment approach across various sectors within the residential mortgage market. Its target assets include Agency RMBS, Non-Agency RMBS, residential mortgage loans, residential real properties and other financial assets comprising approximately 5% to 10% of the portfolio. The Company has designated certain of its subsidiaries as taxable REIT subsidiaries (TRSs). Capitol Acquisition Corp. (Capitol) is a wholly owned indirect subsidiary of Two Harbors. The Company is externally managed and advised by PRCM Advisers LLC, a wholly owned subsidiary of Pine River Capital Management L.P. (Pin e River).

The Company invests primarily in mortgage pass-through certificates, collateralized mortgage obligations and other residential mortgage-backed securities representing interests in or obligations backed by pools of mortgage loans issued by Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), and Government National Mortgage Association (GNMA) (collectively GSEs). The Company also invests in residential mortgage-backed securities that are not issued by the GSEs (non-Agency RMBS) and United States Treasuries. At December 31, 2011, the Company had total assets of approximately $8.1 billion, of which $6.2 billion, or 77.1%, represented its RMBS portfolio. At December 31, 2011, $5.1 billion, or 80.9%, of its RMBS portfolio was comprised of Agency RMBS, $0.9 billion, or 14.9%, of its RMBS portfolio was comprised of senior non-Agency RMBS, and the remaining $0.2 billion, or 4.2%, was! comprised of other non-A gency RMBS. The remaining $1.9 billion of assets consisted p! rimarily of United States Treasuries classified as trading instruments, cash, restricted cash, mortgage loans held-for-sale, receivables, derivative assets and prepaid assets.

Advisors' Opinion:

• [By Amanda Alix]

  It didn't take hybrid mortgage REIT Two Harbors Investment (NYSE: TWO  ) long to spring back -- with vigor -- after the spectacularly lousy earnings reports from agency-only player American Capital Agency (NASDAQ: AGNC  ) and its hybrid buddy American Capital Mortgage. Its own first-quarter reportwas to die for, and the stock has risen over 6% on the day following that announcement.

• [By Lee Jackson]

  Two Harbors Investment Corp. (NYSE: TWO) is a very wounded mortgage REIT that may offer big gains for investors. The company trades well below book value and has a nicely hedged portfolio. Merrill Lynch has a Buy rating on the stock and an $11 price target. The consensus target was not available. The stock closed yesterday at $9.65. Investors are paid an outstanding 11.3% dividend.

• [By Selena Maranjian]

  Among holdings in which Fred Alger Management increased its stake were Two Harbors Investment (NYSE: TWO  ) and National Oilwell Varco (NYSE: NOV  ) . The company reduced its stake in lots of companies, including Questcorand Weatherford. Two Harbors is a mortgage REIT, or "mREIT," recently yielding a gargantuan 11.4%. It's a "hybrid" mREIT, though, investing in both government agency-backed mortgages and ones that are not so backed. Thus, it has more flexibility than some of its peers. Some worry about rising interest rates and prepayments on loans, but Two Harbors has apparently hedged against some of that. Insiders and institutionshave been buying shares in recent months.

• [By Markos Kaminis]

  As investors in Annaly Capital shares already know, quickly rising inte! rest rate! s are a very bad thing for mortgage REITS like Annaly and peers like American Capital Agency (AGNC) and Two Harbors Investment (TWO). Interest rate concern is the key reason the share prices of names in this group have declined so deeply this year already, though the catalyst was intensifying expectations for Fed tapering of asset purchases up until now.

source from Top Penny Stocks For 2015:http://www.topstocksforum.com/top-10-mid-cap-stocks-to-own-for-2015-2.html