Seeking Alpha

Annaly (NLY) CIO and Vice Chair of the Board Wellington Denahan exercises options to purchase...

Annaly (NLY) CIO and Vice Chair of the Board Wellington Denahan exercises options to purchase 100K shares of company stock at $13.25 each (today's close $16.17). Her stake in the company is upped 12.3% to 913K shares.
Comments (34)
  • activetrader
    , contributor
    Comments (38) | Send Message
     
    Always good to hear of a insider purchase of shares, though I'd like to buy at block at $13.25 myself. Perhaps more important to us outsiders is that she now owns over 12% showing a pretty strong confidence in the future of Annaly? That is assuming she holds onto them.
    24 Apr 2012, 07:31 PM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (540) | Send Message
     
    She upped her personal stake by 12.3%, not to 12.3%!
    24 Apr 2012, 07:45 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4059) | Send Message
     
    Hey NLY, I like to buy some too for 13.25.
    24 Apr 2012, 07:34 PM Reply Like
  • R.Fitz
    , contributor
    Comments (402) | Send Message
     
    Wait awhile, maybe we all can
    24 Apr 2012, 07:40 PM Reply Like
  • JLesinski
    , contributor
    Comments (137) | Send Message
     
    I doubt it will get that low any time soon. Selling an mREIT that invests in agency paper is moronic
    24 Apr 2012, 08:17 PM Reply Like
  • Romeo Fayette
    , contributor
    Comments (87) | Send Message
     
    They're exercised stock options with a $13.25 strike. In other words, were NLY < 13.25, they'd be worthless to her. As this is an "exercise and hold" transaction she'll likely be long this stock for at least 366 days to benefit fm LT cap gains. An exec like her will only sell through scheduled 10b5-1 at that point, but she's long the stock up to her eyeballs.
    24 Apr 2012, 11:28 PM Reply Like
  • Regarded Solutions
    , contributor
    Comments (15471) | Send Message
     
    correct!..
    24 Apr 2012, 11:30 PM Reply Like
  • Romeo Fayette
    , contributor
    Comments (87) | Send Message
     
    Not totally moronic. mREITs finance themselves through repo markets, which is a kind of asset/liability mismatch that burned the SIVs of 2008-09. In fact, mREITs had a scare before Thanksgiving 2011, when Euro credit markets started freezing.
    I'm a fan of the mREITs, having played NLY & CYS in the past, even having held HTS as a core position. you have to realize that there's no free lunch though: 10-15% dividend means some risk.
    24 Apr 2012, 11:33 PM Reply Like
  • magirao
    , contributor
    Comments (43) | Send Message
     
    I bid....13.40! liking that an insider is buying in.
    24 Apr 2012, 08:23 PM Reply Like
  • PCScipio
    , contributor
    Comments (204) | Send Message
     
    There's really nothing to see here; she just exercised options for whatever unknown reason. Let's see how long she holds.
    24 Apr 2012, 08:34 PM Reply Like
  • JLesinski
    , contributor
    Comments (137) | Send Message
     
    If she wanted to just unload the shares, she would have sold a portion of the 813,000 shares she already owned, not exercise options
    24 Apr 2012, 08:52 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4059) | Send Message
     
    No, she can still unload but she can not always buy that cheap.
    24 Apr 2012, 08:56 PM Reply Like
  • coddy0
    , contributor
    Comments (1182) | Send Message
     
    Expiration Date for this option 04/22/2019
    She will pay tax for diff. between market price($16.17) and her Exercise Price $13.25
    Why she did it now not later ?
    Possible reason
    1 She expects that market price will be hi-er in the future, so goes tax
    2 Or she expects that her tax rate will be hi-er in the future
    3 or both
    ======================...
    BTW
    If market price will go substantially down, she lost money on this transaction and still pays tax for( $16.17 - $13.25 ) *100K
    24 Apr 2012, 11:56 PM Reply Like
  • Regarded Solutions
    , contributor
    Comments (15471) | Send Message
     
    probably #1
    25 Apr 2012, 12:34 AM Reply Like
  • User 168446
    , contributor
    Comments (108) | Send Message
     
    LOL...How about 4) Options don't pay dividends
    25 Apr 2012, 01:20 AM Reply Like
  • Paul Price
    , contributor
    Comments (1502) | Send Message
     
    She just diluted out all other shareholders by purchasing well below book value.

     

    Is that great news?
    24 Apr 2012, 10:40 PM Reply Like
  • Regarded Solutions
    , contributor
    Comments (15471) | Send Message
     
    so, lemmee guess youre LONG put LEAPS and like to turn a positive into a negative whenever you can huh? just remember whats following you around, integrity......get some.
    24 Apr 2012, 11:20 PM Reply Like
  • dieuwer
    , contributor
    Comments (2255) | Send Message
     
    Mrs Denahan just plunked down $1.3M to buy NLY shares. She is not doing that if she has no confidence in the company. Because in that case, she just could have sold the options for $300K.
    24 Apr 2012, 10:50 PM Reply Like
  • Ocean Man's Evil Twin
    , contributor
    Comments (4) | Send Message
     
    The good kind of insider buying is when they buy at market price. This is dilution.
    24 Apr 2012, 10:55 PM Reply Like
  • Regarded Solutions
    , contributor
    Comments (15471) | Send Message
     
    wrong.....why is it dilution...because she excersized to hold shares rather than SELL.....absolute noodnick.
    24 Apr 2012, 11:21 PM Reply Like
  • Paul Price
    , contributor
    Comments (1502) | Send Message
     
    When a company sells newly issued shares below book value it dilutes out all existing shareholders by definition.
    25 Apr 2012, 07:11 AM Reply Like
  • Regarded Solutions
    , contributor
    Comments (15471) | Send Message
     
    So your stating that 100,000 shares out of ALL the shares NLY has outstanding, "dilutes" all exisiting shareholders.....infer... of course from your long leap put position, that everyone should run screaming into the street selling their shares.......how many shares does NLY have outstanding....what is the dilution of 100k shares in a dollar amount to all other shares?

     

    Or are you just trying to spin a positive into a negative as usual?
    25 Apr 2012, 07:47 AM Reply Like
  • glegg43
    , contributor
    Comments (4) | Send Message
     
    NLY is on my watch list because it is not performing as well as some of its peers. I am pleased to see Ms. Denahan, who is one of the founders, put her money on the line.
    24 Apr 2012, 10:56 PM Reply Like
  • Franta
    , contributor
    Comment (1) | Send Message
     
    Totally agree...this is BS. Can I buy some at 13.25?

     

    Grrrrrrrr.
    24 Apr 2012, 10:56 PM Reply Like
  • Regarded Solutions
    , contributor
    Comments (15471) | Send Message
     
    work for a company that gives its senior management options......guess what the % of options are excersized into actual shares......take a wild guess. they also usually have a time period where the employee can only hold the options....some up to 7 years, depending upon the way the distribution is written with the SEC....would YOU excerise them into shares if YOU held them for lets say 18 months???

     

    Obviously she believes they are worth more than the current PPS.....is that difficult to understand?
    24 Apr 2012, 11:25 PM Reply Like
  • Dano2449
    , contributor
    Comments (4) | Send Message
     
    She does NOT own 12% or anywhere close to it. She upped her stake by 12% to just under a million shares or about 1/10 of 1% of the 971 million shares outstanding. Still, it's always good to have the management have a significant stake and $16 million ain't exactly chump change.
    24 Apr 2012, 10:59 PM Reply Like
  • ChuckJ
    , contributor
    Comments (72) | Send Message
     
    So are you short, R.Fitz?

     

    ChuckJ
    24 Apr 2012, 10:59 PM Reply Like
  • Regarded Solutions
    , contributor
    Comments (15471) | Send Message
     
    Paul Price is......ask him....he owns LEAP puts in NLY.
    24 Apr 2012, 11:26 PM Reply Like
  • powertowerpro
    , contributor
    Comments (10) | Send Message
     
    Purchase to sell?
    24 Apr 2012, 11:01 PM Reply Like
  • Regarded Solutions
    , contributor
    Comments (15471) | Send Message
     
    why? she could have just sold them outright by excersizing to cash out.......obviously this is bullish kiddies. No matter what the short put players tell ya.
    24 Apr 2012, 11:27 PM Reply Like
  • val hunter
    , contributor
    Comments (8) | Send Message
     
    Well, the options execise is probably positive, certainly not negative. And it seems to me that it is not so devastating for interest rates to rise if a healthy long-to-short spread can be maintained, even if it takes a little time to make necessary portfolio adjustments.
    25 Apr 2012, 02:20 AM Reply Like
  • rreggie
    , contributor
    Comments (30) | Send Message
     
    Wouldn't NLY have had to book value of the options when they were issued. Not much dilution in that case. Seems Bullish to me. Long NLY.
    25 Apr 2012, 02:03 PM Reply Like
  • rreggie
    , contributor
    Comments (30) | Send Message
     
    Seems positive to me. Paying taxes now with an expectation of maintaining yield and she is CIO! Long NLY & ARR.
    25 Apr 2012, 02:03 PM Reply Like
  • worldbank
    , contributor
    Comments (118) | Send Message
     
    Good news for all longs..How may of you have the extra $1.3 million to plunk down in one company, bringing your total value to $16 million??
    26 Apr 2012, 03:03 PM Reply Like
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