This stock should be at 15 around BV at this rate it's 30% below book value . If you see the chart this has not happened before. Usually trade just a bit above or below book . Crazy times
They have $1 billion to spend yo buy back shares. What happens to BV when they buy back at 30% below BV? BV goes up, up, up. As for Credit Suisse, they are completely clueless. They take all of the decrease in assets and conveniently forgrt to add in hedging, higher interest net income, CreXus accretive revenue and share buybacks.
I'm 100% in your court. Credit Suisse is playing a guessing game and hasn't factored in the CXS acquisition, common share repurchases (and the subsequent retirement of those shares), the 6-month aggregate savings of the external management program or the fact that the company going forward will not be issuing compensation in the form of options to our Executive Board members.
The company will adjust its interest rate swaps to mitigate the risk of rising interest rates and net income and dividends will rise accordingly.
It's all because Credit Suisse came out and stated that the REAL estimated BV of NLY is $13 per share and AGNC is $23 per share. They really have no clue, but came out with those numbers publically. Likely paid by the Head's of this Bear Attack. Time to load up with even more shares. I hate selling shares in other companies to purchase more NLY shares, but at these prices, I'm not passing up the opportunity.
Good thing the company has still 1.1 billion left from the share repurchase program to buy back shares at these low prices. They made a purchased 27.8 million in Qtr 4 at an average price of $14.28 per share. Still plenty of money left to repurchase and retire 90 plus million shares at current prices.
We will find out on 7/29 how many shares the company repurchased this quarter and at what price!