I have owned NLY for 4 yrs and have an annual avg. return of 2%. Dripping all my dividends. Same as a 10 yr bond or thereabouts. It's a lousy stock but I haven't wanted bonds. I still say NLY over 10 yrs beats the 10 yr. that's how I've always looked at it.
The best thing that can happen is treading water. There will not be a rate increase this year and likely later in 2016, if at all, as 2016 is an election year and the Fed hates to ess with rates in an election year. The economy is weak, consumption habits in the country have been downsized for decades to come, household debt is rising again, wage inflation is modest and the sequester will continue to reign in government spending. Add to this lower energy costs, rapidly advancing efficiencies coming in energy management and demand and these same lowered costs/demand working into the price of goods and services and we will see negligible inflation for the rest of the decade. In this environment the reits can increase leverage, lower hedging costs and increase net interest income for years to come.
Sentiment: Strong Buy
They bought into the Fed speak and the reduction of monthly MBS/Treasuries buying having a big effect on rates. Well, it did. It sent them into the dumper. They were all 180 degrees out of whack with reality.
Sentiment: Strong Buy
if u held for 5 years not at break even now. only way to make money here is to trade the rips and try and get as many div as u can with out getting crushed in sell off
who is the idiot u have a strong buy on the team u r trashing. but u r right they should have known rates were not going up that much
you are right, all I have is a "hunch" that I have had for over a decade that this is a "ten dollar stock". It is now below book by a goodly margin. At present I am short a few March 27, 2015 $10.50 puts. If I get put at "$10.50, I will sell $10.50 calls. If I don't get put I will resell puts a month or two out and repeat same for the next decade. Wish me luck!
For the same reason I would be less interested in buying a stock long that has outperformed for 4 years. I see it continuing pretty much what it's been doing for 4 years, going down a little more than the yield pays you.
And I'm not nearly as convinced as you that NLY is at the bottom. Based on what? What do you see that is going to break the down cycle?
that sounds like the "sell at the bottom" strategy.........never worked for me. If you have the courage of your convictions why aren't you selling short?
Annaly Capital Management (NYSE:NLY) had its price target upped by Keefe, Bruyette & Woods from $12.00 to $13.00 in a research note issued to investors on Thursday. The firm currently has a market perform rating on the stock.
I use to write on this board all the time about the salaries and bonus packages-options. I said this stock cannot hold up with such abuse and I was pummeled by every long. I daytraded this and made money but have been out of REITS for some time including AGNC. It really was criminal what was going on with the insiders and I still don't know how it was all legal. This is the first time I have checked back with NLY and was very surprised it is now sporting a negative EPS. That means they are bleeding money. EPS is supposed to be on the positive side and I would not own a stock otherwise.
Thanks Weiner, I moved to a more shareholder friendly REIT investment, AGNC with monthly dividends and more frequent feedback from management, good luck, you will need it.