Annaly Capital (NLY -1.1%) is downgraded to Sell at Morgan Stanley. No details are yet...

Annaly Capital (NLY -1.1%) is downgraded to Sell at Morgan Stanley. No details are yet available, but with MBS yields falling, it's crystal clear more dividend cuts are on the way for the mREIT sector (though rising MBS prices may delay that for another quarter). On absolute terms mREITs may be overpriced, but relative to other income opportunities they still look to have value.

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Comments (18)
  • Eagle Crowe
    , contributor
    Comments (5) | Send Message
    We all wonder how long the NLY machine can last....when do we get much greed is motivating over good sense...
    4 Oct 2012, 10:23 AM Reply Like
  • Regarded Solutions
    , contributor
    Comments (20531) | Send Message
    This is the only comment I can make:

    4 Oct 2012, 10:25 AM Reply Like
  • TwistTie
    , contributor
    Comments (2429) | Send Message
    I'm running out of cows.
    4 Oct 2012, 10:30 AM Reply Like
  • Regarded Solutions
    , contributor
    Comments (20531) | Send Message
    Hey twist...I wrote an article for you! BDCs....did you see?
    4 Oct 2012, 10:37 AM Reply Like
  • rvn0
    , contributor
    Comments (137) | Send Message
    What does that mean? Are the Annaly cows being milked dry?
    4 Oct 2012, 11:51 AM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2083) | Send Message
    BUY NLY, BUY NLY,BUY NLY, BUY NLY, BUY CIM, BUY CIM...ETC ETC ETC.. And any other REIT that is doin' good too!!!!!


    11.84% & 13.24%


    Capt. Brian
    The Lost Navigtor
    4 Oct 2012, 10:32 AM Reply Like
  • kingdad
    , contributor
    Comments (1371) | Send Message
    And if the Capt's advice makes you squeamish NLY has two nice preferred stocks that also pay a nice and somewhat more secure dividend. NLYPRC and the New one the D-series which I do not have a symbol for but check the OTC mkt.


    Or you can put your money back into those losing investments like Money market funds, Cds and US Treasuries.
    4 Oct 2012, 10:37 AM Reply Like
  • Regarded Solutions
    , contributor
    Comments (20531) | Send Message
    Captain, I need to disagree with ya my friend.
    4 Oct 2012, 10:38 AM Reply Like
  • bmi
    , contributor
    Comment (1) | Send Message
    To be clear the rating is underweight, which can be translated to a sell. :
    Underweight (U): The stock’s total return is expected to be below the average total return of the analyst’s industry (or industry team’s) coverage universe, on a risk-adjusted basis, over the next 12–18 months.
    Not only should you be aware of the different points of view among the firms, but also the different rating scales these firms use. To reduce some of the confusion that may result from multiple ratings systems, each of the third-party independent research providers and Morgan Stanley has agreed to display a Buy (1), Hold (2), or Sell (3) stock rating (comparable to the rating scale used by Citigroup). This rating will be in addition to their own proprietary ratings that they will continue to display on their research reports. However, on your account statements, trade confirmations and on this website, you'll see the ratings of Citigroup, the third-party independent research, providers, and Morgan Stanley displayed using the comparable scale. For Morgan Stanley’s “Industry Views”, please refer to individual reports on stocks.


    Morgan Stanley Rating Displayed as:
    Overweight 1 - Buy
    Equal-weight 2 - Hold
    Underweight 3 - Sell
    4 Oct 2012, 11:01 AM Reply Like
  • getgl
    , contributor
    Comments (869) | Send Message
    If your purpose is yield, NLY and other mReits will end up the place and it seems at better prices. It is as simple as knowing what you need and taking advantage of mispriced assets. NLY at much lower prices will be a buy on that level. Look at their history. They will still do fine.
    4 Oct 2012, 11:05 AM Reply Like
  • kingdad
    , contributor
    Comments (1371) | Send Message
    Its your money Suka's! invest it wisely.
    If for Growth then Not NLY, if for a steady stream of income then not a bad deal. It certainly beats out the Blue chips for dividend income and most others.


    NRF has a new c-series preferred paying 8.875% offering out today. Its common shares are paying 9.82% at today's prices. now that is not a bad deal at all.
    4 Oct 2012, 11:37 AM Reply Like
  • narrowback
    , contributor
    Comments (128) | Send Message
    I hope you are right, getll and Capt. I continue to buy on dips. Hoping that divs, will help pay my bills when I quit the rat race in a few short months.
    4 Oct 2012, 11:39 AM Reply Like
  • ScooterSC
    , contributor
    Comments (38) | Send Message
    You are the guy who likes a 3% dividend better than a 5% dividend. Don't quit your day job.
    4 Oct 2012, 12:10 PM Reply Like
  • ejh1
    , contributor
    Comments (15) | Send Message
    Good insider buying, looks like Morgan Stanley is trying to push the price down to a level they want to buy it at. MARKET MANIPULATION!!!
    4 Oct 2012, 03:18 PM Reply Like
  • bysie
    , contributor
    Comments (8) | Send Message
    I tend to agree with getgl on lower prices, yield will be higher, providing a dividend cut is small and they let us down gently.
    I recently sold NLY, AGNC, but would consider NLY again if prices go lower. Have kept ARR for the monthly income.
    I am seriously looking at preferred shares right now, so thanks for the NLYPRC, will look into it.
    I´ll keep a core holding in mREITS (but smaller than before) and move into more MLP´s and preferred, just for diversification.
    The lower dividend scene with mREITS seems to have some tail wind behind it, but with ARR at 14% I still have to be there. Just being a bit more careful...
    Thanks to all of you for your insightful and interesting comments that I´ve found really helpful in the past for choosing REITS.
    4 Oct 2012, 03:23 PM Reply Like
  • kanan
    , contributor
    Comment (1) | Send Message
    Let's be clear . NLY is now competing with the FED for purchase of mortgages, and will have their margins squeezed. If you are looking for yield I think AGNC is a better bet, as the mortgages they deal in do not directly compete with the fed. No point investing for yield if you are suffering capital losses
    4 Oct 2012, 10:47 PM Reply Like
  • kingdad
    , contributor
    Comments (1371) | Send Message
    bysie their is also a new NRF preferred due out in the pre-market OTC arena soon. I do not have a symbol yet but it is a C series preferred stock paying 8.875 % based on a $25 initial ps price. With the common stock only about1 % higher and with the continuing squeeze on the spread I am waiting for the info and the OTC symbol so I can buy me a hunk hopefully below 25. (I currently own NRFPRB the B-series Preferred stock that pays over 8% and I'm happy with it.)
    5 Oct 2012, 04:16 AM Reply Like
  • Dutch Reader
    , contributor
    Comments (10) | Send Message
    NLY should be able to in prove their position by raising the leverage from 6.3 to where AGNC is 8,5 and some of the other REITS.
    NLY have proven them self in the past.


    Long: AMGC . MTGC . AMTG .NLY .TWO . NYMT.
    5 Oct 2012, 06:17 AM Reply Like
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