ARMOUR Residential (ARR) is a Real Estate Investment Trust (REIT). It has major investment interests in fixed rate, adjustable rate and hybrid adjustable rate residential mortgage-backed securities that are issued and guaranteed either by US Government agencies or its affiliated sponsors. ARMOUR is a massive REIT business with a market capitalization of nearly $1 billion and an average trading volume of more than $6.25 million. Sound performance and impressive growth in the last financial year have allowed the stock to increase its cash flow and stretch revenue and growth margins.
With the start of the new year, ARMOUR continues to display strong signs of growth with positive upward movement on the stock during the first fiscal quarter. This upward trend has been triggered mainly by favorable market conditions that have encouraged positive investor sentiment and aggressive trading. Consequently, the trading price of the stock is currently safely poised at $6.83 after climbing up to a 52-week high of $7.8 in the first quarter. The fact that the stock has gained considerably after plummeting to nearly $5 a share in the last quarter of 2011 has reinforced the trust of investors in the upward movement of this stock.
I believe that the stock has the potential to meet its estimates and surpass its target trading price of $7.30 by the end of the second fiscal quarter. The stock seems even more promising when we consider the fact that it has a negative beta of -0.21. This means that the stock has the capacity to perform inversely against the predominant forces prevalent in the market. To continue reading, click here.