Jim Cramer on Ellington Financial: “Not For Me”

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.

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 risk and potential of EFC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EFC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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