Ellington Financial Inc. (NYSE:EFC) was among the stocks Jim Cramer was focused on, as he discussed Mad Money’s latest game plan for the week. When a caller mentioned that they had held EFC shares for 12 years, Cramer said:
Well, my problem is this: That’s been a mortgage, when I see these mortgage finance companies, I never know what they really own, so I never feel like I can give any good guidance. So that’s why I do not recommend them, even though they have very big yields. Not for me.
Photo by Adam Nowakowski on Unsplash
Ellington Financial Inc. (NYSE:EFC) acquires and manages a diverse portfolio of financial assets, including residential and commercial mortgage loans, consumer loans, corporate debt, and derivatives. As a real estate investment trust, the firm also handles reverse mortgages and distributes at least 90% of its taxable income to shareholders as dividends.
While we acknowledge the potential of EFC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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