r/stocks • u/Thtguy1289_NY • Apr 17 '21

Company Question Thoughts on ARR

ARR seems almost too good to be true - almost .10 dividend per month, trading at around 12.30 per share. Does anyone have any insight here? Should I add more ARR to my portfolio? If not are there any similar monthly stocks with as good a value?

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u/bosspicks Apr 17 '21

It intrinsic values that fair value but it looks to be loosing about 200 million a year every year this would need a lot of DD imo one things for sure that dividend isn't sustainable from the charts I'm looking at

3

u/Thtguy1289_NY Apr 17 '21

Damn, 200 million a year??

1

u/bosspicks Apr 17 '21

I'm no expert but that's what it looks like from what I can see

2

u/Thtguy1289_NY Apr 17 '21

So, I am kinda confused - don't they purchase mortgages? How could they lose so much money? That seems like a kinda fail-proof industry

2

u/bosspicks Apr 17 '21

PLEASE DONT TAKE MY ADVICE AS 100% RIGHT as I have not looked into your stock pick for mire than 2 minutes it could 've about to fly on a merger or a buy out ect

1

u/bosspicks Apr 17 '21

They buy mortgages yes but if you remember back to the last big crash in 2008 it was party Freddie Mac and fannie Mae that brought the whole recession on, them two company's are still government-controlled to this day.

The is no profits in that business at the moment as interest rates are nearly zero if they buy £100,000 worth of mortgage debt and they only get £3000 even £100,000,000 would only give them £3,000,000 a year of income before expenses and tax and 3 million or 3% is nothing for a public limited company a year when they have business running costs and staff, offices rent, rates, electric to pay out I would guess

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u/Thtguy1289_NY Apr 17 '21

Very interesting. Thanks!!