From a recent Mad Money show:

"I used to like these companies but they use too much leverage and I don't think the system is going to give it to them anymore. I want you to ring the register."

Strong Buy - Price 17.29 in Feb. 12
by JMP Securities

Following Capstead's 4Q07 earnings call Feb. 11, we...have applied a new interest-rate forecast including a 2.25% floor fed-funds rate, versus our previous 3% floor. We've also adjusted for a lower gross asset yield and higher premium amortization expense...Our '08 GAAP EPS estimate rises from $2.35 to $2.50; our '09 estimate is now $2.65, versus previous $2.50. New '08 projected total dividends...provide a 14% forward yield on recent CMO closing price. Target [goes] from 18 to 20 to reflect higher dividend, 67 cents, and tangible book value $12.97E for 1Q09. We are now modeling a 30% total return in CMO shares over the next year. Market-cap: $543 million.

Severely Mispriced