NLY Execs made it seem like a benefit to shareholders when they presented this change in compensation and the shareholders could not see the real issue. The CEO and direct reports were being paid so much money for poor share price performance the heat was too much for them, so this compensation plan was put in place to hide the real compensation for all the executives. This was a Shame from the get go, I sold my shares, bought puts right after the shareholder meeting that approved this compensation plan. Really put it to the shareholders to keep their huge salaries and hide them from the shareholders..
Same here, the business model does not fit the new Fed approach. This piece of @@@@ is headed lower and owning some puts are now paying me dividends. So many on this board cannot see the real story due to the dividend rate.
Something to think about, when you look at CLF's balance sheet, you see a misleading picture. Given the lack of interest in owning CLF stock, the bonds are trading at a significant discount which has provided CLF with an opportunity to buy those discounted bonds back and replace them with newer bonds, which reduces debt, but pumps up the reported gains by reporting the difference in these bond swaps as income. CLF cannot continue to do this and when it stops CLF's balance sheet will then only show ordinary operating income. As a comparison, last quarter CLF reported 314 million in gains from bond swaps with only 72 million in operating income. Balance sheet looks better than it really is and when this picture becomes clearer, this stock price will be seriously impacted unless IO prices improve.
Kors and Fossel are feeling the pressure of money moving into smart watches and Apple will #$%$ the bulk of it with their recent entry, watch Kors next financial report and you will see the move away from fashion watches to smart watches and Apple will start taking the lions share of this market. Kors and Fossel do not have the skills to compete with Apple plus the poor management at Kors is continuing to hurt the stock performance. .
Also, just a bit of what I see with FCX, This IPO to enhance their oil and gas operations in the gulf of mexico smells like the same mismanagement they executed when they bought the oil and gas assets. Why enhance now with oil and gas under pressure with huge inventory etc. Not sure this is a good idea, so the market will likely take this stock down again.
I have been using covered calls, short term, to reduce my basis, so far it has worked for me. my last covered calls expired last week and I was able to keep the premium paid to me.. So I am again looking for short term option plays to continue reducing my basis. I have reduced it to about $21, so my next covered call could be executed if the market begins to like this stock. If I read your post correctly, you favor OOTM puts, like November 15, to protect against another move down and not covered calls. If this is correct, how far out of the money? also, is Novmeber the fall option you would use?
You cannot ski up hill, so I see your comment as about right on, going down and way out ahead.
It looks like each one of you will learn the hard way, book value will determine the stock price and rising rates causes book value to fall. Good Luck, and remember current NLY leadership have not experienced running their company in a rising rate environment.
Today, in a very strong market every one of these retailers are up close to 1% or more except our favorite retailer Kors, which is down a quarter of a percent today. That performance should tell all just how poorly this company is viewed by the market.
The Chevron executives bailed at your buy point and now the CEO owns zero shares. So, at least they had aninfo for them to sell. and not buy
rated Kors as a sell, Even with management's continued low balling their forecast, the markets now taking their comments as fact. Low balling is always Kors approach, they think it is best for shareholders for them to low ball their estimates. it really helps shareholders trying to understand how Kors will perform going forward..
For some reason you continue to overlook the affect rising interest rates have and will continue to have on NLY;s mortgage portfolio. The book value of NLY will hurt profits and share price more than an increase in the spread. You just do not get it, do you?
And, to add to your analysis, as interest rates rise, those assets purchased decrease in value which moves the book value of the portfolio lower, and this will affect the stock price more than the margins between short and long term rates. This stock will take you for a big negative ride as interest rates rise and that is on it's way, so beware. DO NOT GET TOO FOCUSED ON THE DIVIDEND RATE This dog will make you pay. Smart money will stay away from this dog until rates reach appropriate levels, which could take several years.