If I thought AGNC were a cockroach, I'd step on it next time it passes my way. Big earnings miss and book value drop to 28.93 or so has not helped. Some of the bad news is already in the price.
Read the news, they cannot compete with the federal reserve...if hamp is voted that is the end of the reits...read/listen to the news it'sn everday,,,,
The government has nly in their cross hairs...notice stock slowly sinking...nly cannot compete with federal reserve...say goodbuy to this high yield...watch for div deduction next month
Took a quick look at the yield of NLY over the past 5-6 yrs. Basis: Looked at the share price on the 15th of the month following the annoucement date going back to 2008. That allows the stock price to adjust for rate and exdate of prior quarter divi. Annualized the quarterly divi and calculated the yield on that date. Simple exercise but somewhat useful.
Low yield is Apr-13 price at 11.6%
High yield was Oct-08 price at 18.6%
average seems to move to 14-15.5% range.
Thanks for your input. I've been thinking that it's about time to dollar average down and I think I'llset up a low ball buy order for a few more shares and see how things work out over the next few weeks, just in case the bullsstart to pull out of this market.
Once again a mix up of companies names by the ill informed. AGNC is not NLY but the names are close and news reports usually mix up the headline data and report on AGNC not NLY.
I know - "past performance is no guarantee...", but in view of the recent little hiccup in NLY price (caused, apparently, by panic over AGNC book value shock), I thought it would be instructional to examine NLY total returns since 1997.
I obtained the data from the "historical prices" information right here on Yahoo, which is very useful because it shows "adjusted" closing price information daily - adjusted for dividends and splits - and can be downloaded into a spreadsheet.
The chart of "adjusted close" since October, 1997, plotted on a semi-log scale, is very revealing. I wish I could figure out how to post it here, but I am basically a hardware type, not a softwareoid. However, some statistics are very interesting:
I calculated the trailing 12 month (TTM) total return of NLY - price change plus dividend - on a daily basis over the period of the available data, up to and including Friday, May 3, 2013. The average TTM return is 21.4%. This is not too shabby.
The other side of the coin is "risk", which I measure as the variance of the TTM return. This comes to 7.29%.
So the ratio of average return (alpha) over variance (beta) is 2.94.
I don't know what is going to happen when the next financial crisis hits us, but if NLY could continue on it's statistical course going forward, I would be very happy to be invested in it.
Do your own due diligence, but this is my offering.
The average volume for Annaly Capital Management has been 8,769,800 shares per day over the past 30 days. Annaly Capital Management has a market cap of $15.0 billion and is part of the real estate industry. Shares are up 10.4% year to date as of the close of trading on Thursday.
TheStreet Ratings rates Annaly Capital Management as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, attractive valuation levels, expanding profit margins, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 57.2% when compared to the same quarter one year prior, rising from $445.56 million to $700.50 million.
The gross profit margin for ANNALY CAPITAL MANAGEMENT is currently very high, coming in at 95.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 76.74% significantly outperformed against the industry average.
Net operating cash flow has significantly increased by 121.67% to $352.76 million when compared to the same quarter last year. In addition, ANNALY CAPITAL MANAGEMENT has also vastly surpassed the industry average cash flow growth rate of 36.21%.
Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, ANNALY CAPITAL MANAGEMENT has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
Always sell what gives you pain, regardless of other factors. I have been in the market as long as you and no longer loose sleep over it. By now, you should have learned to take your losses like a man (woman?) and get over it.
I have been with NLY since literally since day one and have accumulated a very substantial amount of shares acquired at all kind of prices. I just sit tight and I don't loose any sleep over the current drop. Sooner or later it will go up because NLY is a well managed company and they know more than we do..Do you see any mutual funds or other major stockholders bail out? NLY is making some changes, which shows that they are adjusting their thinking and strategy as circumstances require. I think this is good even though it may take some time for them and us to see the fruits. It's planting season, not harvest time.