The truth, the stock went down from 18.15 to 17.51 in two days.
The results where terrible,and everybody expected a better Q Core Earnings for the quarter ended June 30, 2010, of $335.7 million or $0.59 per average share available to common shareholders as compared to Core Earnings of $365.5 million or $0.66 per average share. One can not talk the stock price up one needs better results.
NLY is like a milk cow. I want it to stay healthy and keep producing milk,for re-sale and family consumption. I have angus cows to raise and send to market for cash(capital gains). I don't confuse the two.
more importantly, BV was even more underwhelming, which will practically force analysts to downgrade the stock. they have no alternative to save face. so, waiting for that other shoe to drop... then maybe nly shares a buy.
Not thrilled about the reduction in BV. Not thrilled about NLY's portfolio. Not thrilled about the current spread. Not thrilled about NLY's reluctance to lever up. Not thrilled with their continual PIPE-ish financing.
But let's face it, Mr. Let's Face It, the entire sector's reports stank this quarter. What did you expect? It's not like the spreads are fabulous for mREIT right now. The symptoms you're feeling right now are just the groggy aftermath of the Fed's toking up the markets in 2008-2009.
Is NLY going to go bankrupt? Nope. Are dividends going to go down a bit? Probably. Are they going to remain well above what you can get in any other sector with the same level of risk? Probably.
So I'm sitting tight. It's not like I have to sell my shares in the sector.
just a suggestion... If you are looking for an earnings slope smooth as glass with so many moving part, in unprecidented times best head for cd's or short term treasuries.
Volatility and tolerable "surprises" are the price we pay for a controlled risk double digit yield.
Many of us are happy with the bargain.
that's how you sounded 2 days ago
Millions of shares were just sold @ 18.30.
As the aftermarket price nears that level some buyers having seen their stock drop to the low 17"s start saying "The Loser's Prayer".
You know, that's the one thast goes "Please God, just let me out even".
More seriously, I expect 18.30 or thereabouts to be upside resistance for a bit while these get cleaned out.