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[Superfly]

Anworth Mortgage Asset Corporation (Anworth) is engaged in the business of investing in United States agency mortgage-backed securities (Agency MBS). The Company seeks long-term investment returns by investing its equity capital and borrowed funds in such securities and other mortgage-related assets. As of December 31, 2008, the Company’s portfolio consisted of Agency MBS and Non-Agency mortgage-backed securities (Non-Agency MBS). As of December 31, 2008, approximately 99.9% of its total portfolio was Agency MBS. As of December 31, 2008, the Company had total assets of $5.48 billion. Its Agency MBS portfolio, consisting of $5.3 billion, was distributed as 15% agency adjustable-rate MBS, 65% agency hybrid adjustable-rate MBS, 20% agency fixed-rate MBS and less than 1% agency floating-rate collateralized mortgage obligations (CMOs). Its Non-Agency MBS portfolio consisted of approximately $7.3 million of floating-rate CMOs.

ANH falls under the category of a REIT, but this is unique (to me anyway), as they are investing in these bad mortgage based securities that are all over the place. Just think of how much money these guys could make in 5 years.

ANH site: http://www.anworth.com

2008 10K: http://phx.corporate-ir.net/phoenix....ZW5r&ListAll=1

ANH Eyes Higher Profit in 2009:
Anworth eyes higher profits as borrowing costs dip | Reuters

Remember the recession in 2001? They were about 5 bucks then, in 2003 they were 15 bucks a share. 2001 was nowhere near the recession we are in now, these guys could be up around 25 bucks a share in 5 years. The 5% quarterly dividend is even more appealing, especially at these prices (.30).

PE is a little high@10, but hey, that means they are pretty solid .

Recommending a LONG buy on these guys.


Disclaimer: As a beginning investor, I may or may not be right. Be sure to do your own DD before buying any stock recommended by anybody.

[Superfly]

I am requesting this information as a(n): Individual Investor

Comment: Hello. I am part of a worldwide group of investors containing
over 5 million dollars in investing capital, and have been looking at a
potential investment in your company, and had a couple questions. When
you talk about how you buy up mortgage backed securities, do these
include the "bad mortgage backed securities" that we hear about on the
television all the time, or just safe mortgage backed securities? Also,
would you be able to offer any insight as to the outlook of your company
once we come out of this recession? Thank you for your time.

Matthew Wenzlick

Dear Mr. Wenzlick,

We primarily purchase agency mortgage-backed securities (MBS) for our
portfolio, which consists of securities issued by Ginnie Mae, Fannie Mae
and Freddie Mac (these are not subprime loans, or what would be deemed
"bad mortgage-backed securities" which you have referred to below).
Please note the following:

Agency MBS are securities that are obligations (including principal and
interest) which are guaranteed by the U.S. government, such as Ginnie
Mae, or guaranteed by federally sponsored enterprises such as Fannie Mae
or Freddie Mac, which were placed in the conservatorship of the U.S.
government in September 2008. Our investment grade Agency MBS portfolio
is invested primarily in fixed-rate and adjustable-rate mortgage-backed
pass-through certificates and hybrid adjustable-rate MBS. Hybrid
adjustable-rate MBS have an initial interest rate that is fixed for a
certain period, usually three to five years, and then adjust annually
for the remainder of the term of the loan. We structure our investment
portfolio to be diversified with a variety of prepayment
characteristics, investing in mortgage-related assets with prepayment
penalties, investing in certain mortgage security structures that have
prepayment protections and purchasing mortgage-related assets at a
premium and at a discount.

While I'm not able to offer any insight as to the outlook of our company
once we come out of this recession, please let me know if you have any
additional questions that I may assist you with.

Thank you for your interest in Anworth Mortgage.

Very sincerely,

John T. Hillman
Director of Investor Relations
Anworth Mortgage Asset Corporation
310.255.4438 | Fax 310.255.4538
www.anworth.com

On a side note, he answered me about a half hour after I sent him the email. Investors must be a priority for them!!

[chuckd]

Good job Superfly !!

[fherrada]

Great work Superfly, hey i told you you would get rep points quickly and get ahead of me lol...But seriously, i like so far your view on this company and will study it in the morning but i am with Lattes on that one, consistently underperforming is making me take a step back...But i will be watching this one, i love the Div payout...I am still holding on KCAP for the div play but this one has a good chance to become part of my longs as i am working slowly on regular incomes...
Thanks for this post..

[Superfly]

Underperforming it may be. But in the very least it has been a stable dividend payer. Good long term investment for a beginner who doesnt want to risk losing his money. Look at 2001-2003, 2001 was a recession, hence, lots of securities to buy up. The stock went from 6-15. Not saying that that is the entire reason, but im sure it was a factor.

[fherrada]

Indeed Superfly, it is in my radar now but i just need to study it a little more especially after my first cup of coffee in the morning lol ...

[Superfly]

I know that feeling all too well...lol

[Kyle]

They reported Q1 earnings less than a week ago. The ex-date for dividend has past. So it might not be the best time to buy unless you want to hold in the long term.

[Superfly]

Posted on the 27th, 3 days before dividend ex date