I find it amusing that NLY is pumped by Cramer who we all know not to be very consisten with this picks. See OCLR, AA and countless others.
I notice he is always trying mentiong AGNC and speakes of the fact that he is "not comfortable with picking them because he wants more disclosure out of AGNC".
I am proud to see AGNC not budge and basically telling Cramer "we make mone and will continue to make money an no you can't learn our recipe to give us competition , go F Urself".
Cramer you Schill!! tell your schill cronies "no luck".
Meanwhile you NLY investors do you recognize Cramer is your head cheer leader and what he usually does when a company starts to stumble? Recommends more and then eventually just stops talking about it, out of mind out of sight.
Sort of like FFIV, don't worry when that is back to its old levels he will be back to pumping that also!! at the top for us suckers?!
---- Your confusing the two the 2005 and 2008 ------
in order to predict the future, you must do it before it happens..... in 2006 NLY's management TOLD US every quarter until it happened that the Housing market was "heading for a slow motion car wreck", pulling in it's investments... and then pounced on the opportunity in 2008, making more money during the financial crisis of 2008 than at any time in it's history before then.... mean while untested managements of companies trying to copy NLY went out of business... what did AGNC see coming? we do not know... because AGNC is untested.... (and by the way, AGNC is already doing the wrong things by using leverage to maintain dividends during the best interest rate spread that they likely will ever see again)
as far as confusion.... if any one wants to see confusion in action before one's eyes... simply see one of Jforuus's posts languishing about CSA or 2005 then trying to related these unrelated things to NLY... actually it is more like psychos.. as if "you see dead people" where they do not exist.........
MY parting words is that don't take my word or his word.
To help you with the slipper slope leverage rides on: The following is for Apartment REITS yet it illustrates it quite well.
Read pg. 18 at least and 16 thru 17.
Knowledge is power, don't be confused by other and if you are then walk AWAY from the deal. Otherwise you will be the weak hand that is selling when you should be buying.
"On the other hand if property assets are financed by debt there is no direct effect. Only the indirect
effect through FFO applies. Since on average a dollar of property assets financed by debt adds only
$0.0075 to FFO (i.e., 1/10 the effect of equity on FFO), this indirect effect adds only about $0.02 to the
shareholder value per dollar of assets financed by debt. This is an average effect, and it is economically
very small. The implication is that it takes only slight changes in the characteristics of a REIT to make the
impact of debt-financed acquisitions on shareholder value negative. In particular, if a REIT is smaller,
less focused or not an apartment REIT, the marginal G&A expense will be higher and FFO correspondingly
lower. If the REIT is more levered and less focused by property type, marginal interest costs will be
higher. Again, debt will be more likely to have a negative impact on shareholder value."
------ learn our recipe to give us competition ------------
??? you do know AGNC is only 3 years old correct??? and that NLY is 15 years old????
the reason Cramer is not "comfortable" with AGNC, is because the management is untested.... anyone and their mother could have made lots of money in this business in the last 3 years, (and why AGNC and several other companies popped up to copy NLY), the only problem is the last 3 years is the best spread market that has ever been.... nor will we ever see again most likely......
there were many companies sort of "copying" NLY back 10 years ago, and 5 years ago... they all went out of business, a lot taken out by the financial crisis... NLY not only didn't go out of business, it made more money and dividends than at any time in it's history during the financial crisis... (save these last three years of the best market we will never see again)....
so long story short, you just came onto a board of a stock, that INVENTED the recipe that AGNC is copying... and proceeded to tell us the 3 year old daughter of a supermodel is "hot"..... great...
(speaking of AGNC, you might want to check into what leverage is and what it should be doing during the "best" times we will never see again in a market)....