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  • On The Way To $500,000: Making Lemonade From Lemons [View article]
    I like the $LULU calls. The stock broke through a key pivot point in late January ($64.49) and it has shown good strength since then (and its now ~15% above the pivot). There is definitely room to move higher by September.

    Fundamentally, the company is knocking the cover off the ball...sales and earnings growth are very strong and their profit margins are ridiculous (since over 90% of their merchandise is sold at retail price!).

    I prefer higher delta calls with more intrinsic value...but that is just a personal preference.

    Looks like you got a good fill on the $75s though.

    Cheers to making lemonade with [lulu]lemons... :)
    Mar 22, 2012. 01:17 PM | 1 Like Like |Link to Comment
  • 3 Ways To Reap The Dividends From Kinder Morgan And El Paso Merger [View article]
    Very nice summary of the Kinder Morgan Complex, TJ. Keep up the good work, bro...
    Mar 22, 2012. 12:26 PM | 5 Likes Like |Link to Comment
  • Taking Cover: A Strategy For Dividend Stock Investors During A Market Pullback [View article]
    You are correct, IncomeYield...covered calls are by no means a free lunch. One of the downsides of the strategy is losing your stock (albeit at a higher price). Its a balancing act between premium yield, upside profit, and margin of safety. At the end of the day, its a risk/reward decision that will vary by investor...
    Mar 22, 2012. 11:55 AM | 2 Likes Like |Link to Comment
  • Taking Cover: A Strategy For Dividend Stock Investors During A Market Pullback [View article]
    Thanks Tradevestor...we've been enjoying your articles as well. Do you utilize a covered call strategy?
    Mar 22, 2012. 11:41 AM | Likes Like |Link to Comment
  • Taking Cover: A Strategy For Dividend Stock Investors During A Market Pullback [View article]
    Hi pal, thanks for the comment. You are not alone...we'll put together a detailed example in our next article. Which dividend stocks do you own? We could use one of yours as an example...
    Mar 22, 2012. 11:39 AM | 6 Likes Like |Link to Comment
  • Annaly Capital - The Beginning Of The End [View article]
    Ha! Michael, I had to laugh myself...I literally couldn't believe what I was seeing...
    Mar 21, 2012. 11:50 AM | 1 Like Like |Link to Comment
  • Annaly Capital: Prudently Managing Risk [View article]
    Hi Patrick - NLY has recently chosen to use prepays to "harvest gains"...hence the reduced leverage.

    In other words, NLY is taking advantage of the recent run-up in agency MBS to take profits (and they aren't chasing the market just to put money to work). This is comparable to an equity fund manager taking profits if they feel stocks are overbought and due for a pullback.

    NLY is raising cash by reducing leverage. If agency MBS prices come in, as management expects, NLY will have the opportunity to add to its portfolio at lower prices (which could lead to dividend hikes down the road).
    Mar 21, 2012. 11:03 AM | 1 Like Like |Link to Comment
  • Annaly Capital: Prudently Managing Risk [View article]
    A well written article, Michael! Obviously we agree with you...

    The NLY management team has a long track record of managing their portfolio over various interest rate cycles. They definitely know what they are doing when they decide to reduce leverage...
    Mar 21, 2012. 10:56 AM | 1 Like Like |Link to Comment
  • Annaly: What Is Going On? (Part 3) [View article]
    Obviously, we agree with you RS! Well done, sir.

    We wrote a similar article last night...

    http://seekingalpha.co...
    Mar 21, 2012. 10:51 AM | 1 Like Like |Link to Comment
  • Annaly Still A Buy Despite Another Dividend Cut [View article]
    Hi Kotzker - how much of your total portfolio is in NLY?
    Mar 21, 2012. 10:43 AM | Likes Like |Link to Comment
  • Annaly Still A Buy Despite Another Dividend Cut [View article]
    Thanks for the comment, bill. It's ok to use the word "stupid" if you are calling a spade a spade... :)
    Mar 21, 2012. 10:39 AM | Likes Like |Link to Comment
  • Annaly Capital - The Beginning Of The End [View article]
    Agreed with jonk...shorting a stock with a 14% dividend is a suicide mission. Also, the author didn't even mention book value in his "valuation" table...it seems like he may not fully understand the mREIT space.

    Leverage drives mREIT earnings...NLY dividends are lower because leverage is lower...there's nothing wrong with prudently managing risk...

    SHMULIK - PLEASE DO NOT REPRODUCE OUR CHARTS WITHOUT OUR PERMISSION! Thank you.
    Mar 21, 2012. 10:29 AM | 21 Likes Like |Link to Comment
  • Annaly Still A Buy Despite Another Dividend Cut [View article]
    Hi jdh44 - That's a typo...clearly the curve has shifted to the left. Thanks for pointing that out...
    Mar 21, 2012. 09:52 AM | Likes Like |Link to Comment
  • Annaly Still A Buy Despite Another Dividend Cut [View article]
    Thanks for the compliment, Greg. Much appreciated...
    Mar 20, 2012. 11:12 PM | Likes Like |Link to Comment
  • Annaly Still A Buy Despite Another Dividend Cut [View article]
    Thanks for commenting, RS. We value your "opinion"... :)
    Mar 20, 2012. 11:11 PM | 1 Like Like |Link to Comment
COMMENTS STATS
760 Comments
621 Likes