I find this all fascinating... Lord knows I wish I wasn't fascinated from a long position, but nevertheless, what's happening now to NLY and the rest of the mREITS is an example of just how far Mr. Market can take a stock or a category to the extreme... It really seems as though the market is saying that mREITS cannot operate successfully if at all in a rising interest rate environment and a rising interest rate environment is a fait accompli. Neither premise has the certainty that the market is declaring for mREITS right now imho. I don't think the rate of book value decline merits this type of discount to book value and at some point p/e ratios even at an assumed lowered level of earnings have got to be taken into consideration as a way to value this stock, doesn't it?
Exactly. GS is the biggest #$%$ of all Wall Street #$%$s. They downgrade NLY but they may buy NLY right now. They did the same thing when they recommended others to buy derivatives and they shorted them at the same time in 2008.