Longs taunting shorts remind me of that Monty Python Movie
Remember when the knight cuts of the guys arm, and the victim says it's only a flesh wound. Then he cuts of the other arm and he still taunts him, Then he cuts of both legs and the long is laying on the ground saying, Come back here shorty, I'll bite you feet off!
And yet the short was too stupid to walk away in victory. Instead he stood above the long, got bit which caused gangrene, and died in pain. The long's arms and legs were reattached and eventually he went home in victory. God save the king from the pretenders and usurpers. Death to them all.
That's almost a good point. But the CEO putting $2M of her own cash down says unequivocally that she thinks the shorts holding here are more Patsy than King Arthur, with "two empty halves of coconut", "bangin' 'em together." The shorts who won by shorting at $16 or so won alright...but NLY isn't Lehman Brothers no matter how much they wish it were while seeking cover - incredibly foolish to not book the victory and move on, and SI numbers do show that some shorts have done so already - the ones that remain may yet #$%$ defeat from the jaws of victory, and in stories like this one, they usually do. A fair number of new longs here waited quite a while to start buying, trying to take full advantage of the short sellers desire to scare out the high-yield-chasing, no-conviction crowd as 10-yr rates moved back towards sanity. Might the shorts manage $10? Sure. Are some longs a little too glib? Maybe...but the longs shorty should fear aren't the ones who think "CEO buying means their badly timed REIT yield adventure is nearing an end"...the scary ones like low prices just fine, long time horizons even better, and economic advice that misguides the herd dejour off the nearest cliff most of all.
It wasn't my intent to bash this stock. Only to make fun of the longs acting like the shorts here are clueless. Now you have seen the result of a move in the 10 yr from 1.6 to 2.9 and how it has decimated mREIT's. Now as the 10yr moves up to 4 and 5% in the next couple years as most analysts think it will, is it really time to start back into these things? I say not. I will stay in BDC's that are actually profiting from increasing rates until safe to come back into REIT's. That is right, I will be buying this stock at some future date. Great company, terrible environment.