Phage, I,too, became interested in the company after reading the Grant article. I am looking for some yield investments as I feel I have enough money in equities and too much cash. In doing some further research on the company I found that NLY has a web site at www.analy.com - you might check it out. Since you are in a related business, any further comments you have regarding NLY would be appreciated.
I was wondering if they had a site but didn't see anything on Yahoo.
As to being in a related business, I don't know. I was a small landlord and, at one time, an employee of larger landlords. Even so, the residential REITS left me scratching my head: they're functioning on a whole different level of complexity.
Like I said, NLY is a whole different type of business--exclusively paper. If you look at the design of the business and at the kinds of people who were selling it last summer, you get the picture of something that is bound to be volatile. (If someone sees this differently, I wish they would say why.)
If you can live with the ups-and-downs of the share price, you get a relatively attractive return with a relatively high degree of certainty. (The market value of the stock is inconsequential, so long as you aren't under pressure to sell.)
As long as NLY can survive and prosper, this situation ought to remain about the same. You could buy this stock on high yields for years and sell whenever it's bid up by large investors.
Want to see a bizarre and somewhat similar situation? Take a look at Great Northern Iron, an income producing property trust. The trust goes out of existence at some point in the not-too-distant future, so it may not be a good investment; but large investors, Mario Gabelli for one, were moving in and out of this stock for years.
These guys tend to think in terms of relative opportunity.