I am a bit surprised NLY isn't up more today since the 10 year is at 2.2 yield. which is a great benefit to companies like NLY. IMHO NLY should be trading over $11.50 today.
Between NLY's high dividend payout, earnings & the fact shares trade below book value... i fail to see why investors aren't buying up the shares. Investors who point out how the dividend fluctuates are correct; however, given HLF's history and relatively high rate of payout, this is a risk I'm willing to accept.
NLY cut their swap/swapation position from 80+ percent to 48 percent of repos during May and June. I doubt they would reduce it any more. On the asset side, i forgot to mention the added commercial RE they purchased. I also expect they would have added some MBS to keep their leverage around 5.5 to 6.
I'm thinking more like $.36 to $.37 and possibly more if they took off some of their hedges but we all seem to be in the same range. They need to issue a special dividend at year end good guidance for the next quarter.
Sentiment: Strong Buy
more sellers than buyers. Now you go figure out why that is and we will all know. Nothing changed in one day. Quantitative easing is ending. That may have an indirect affect. But who knows. Maybe it goes back up Monday and we can have this discussion all over again.
Why would there be a short squeeze,when they,re coming out with quarter nunmbers shortly ????
Good jobs #'s means interest increase is coming sooner than later which hurts interest rate sensitive stocks!
The mortgages currently held by MREITS are already marked to market and consequently some of the forward interest rate risk is already in the book value of these share. In other words, when mortgage rates eventually do rise, the book value of these shares may not fall as much as some are anticipating. The underlying bonds are already priced for market risk, the discount to MREIT book value is redundant to some extent.
Last quarter they had 23 million in a one time charge that reduced income. They also added 2.5 billion in mbs. Add these together with the .31 income of last quarter, i get between .34 and .35 in income.