Annaly Capital (NLY) is reiterated a Sell with price target cut to $13.50 from $16 at FBR as its...


Annaly Capital (NLY) is reiterated a Sell with price target cut to $13.50 from $16 at FBR as its proposed purchase of CreXus is admittance its business model of Agency MBS purchases is toast in the current environment. Isn't the purchase of CreXus a step in changing the business model though?

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Comments (15)
  • Mark Williams
    , contributor
    Comments (370) | Send Message
     
    Hmm. Should one be taking financial advice from someone who doesn't know the difference between admittance and admission?
    13 Nov 2012, 07:32 AM Reply Like
  • uhrichew
    , contributor
    Comment (1) | Send Message
     
    agreed!
    Doesn't really inspire confidence in the writer.
    13 Nov 2012, 07:49 AM Reply Like
  • MRFINANCE
    , contributor
    Comments (30) | Send Message
     
    Oh, the business model is toast! Surprise.

     

    I can't figure out what direction NLY wants to go. Buy back shares? Buy another REIT? Increase leverage? Sounds to me like a management team scrambling to find answers.
    13 Nov 2012, 07:37 AM Reply Like
  • chopchop0
    , contributor
    Comments (5171) | Send Message
     
    Business is toast after 20+ years? Hardly. I think this move to diversify is a step in the right direction
    13 Nov 2012, 08:10 AM Reply Like
  • FREDDESAIN
    , contributor
    Comments (21) | Send Message
     
    I couldn't agree with you more. If all these reits are going south, where do income investors go? I'm staying put with NLY and ARR.
    13 Nov 2012, 09:22 AM Reply Like
  • TwistTie
    , contributor
    Comments (2429) | Send Message
     
    It is a big step and it is freaking us out, just like every other bit of news we read does.

     

    Run awaaaaaaay! Run awaaaaaaay!
    13 Nov 2012, 10:56 AM Reply Like
  • Rhianni32
    , contributor
    Comments (2086) | Send Message
     
    Who the F is FBR Capital and why would I care that they think NLY is a sell?
    13 Nov 2012, 11:07 AM Reply Like
  • Boog
    , contributor
    Comments (96) | Send Message
     
    Wow! Makes no difference who they are....they're just one faint noise source riding the strong sell signal broadcast by just about ANY source you want to choose - and - most importantly, market action confirms the recommendation. Hangers-on simply don't want to fess up to having poor judgment and are suffering far more capital loss than divi gains (assuming they bought in the last several months). Others who still have a net paper capital gain are seeing it dramatically eroded and about all they can do is announce the tired old "I'm in it for the divis" and hope they either live long enough to see it recaptured or don't ever have to cash in their investment. It's called "falling in love with a stock" - and I know first-hand...been there, done that...but NOT THIS TIME!
    13 Nov 2012, 12:33 PM Reply Like
  • Erv60
    , contributor
    Comments (7) | Send Message
     
    Hard to watch 3 years of dividend earnings get vaporized by falling stock price (if you sell). Long term, NLY will again be a good investment.
    13 Nov 2012, 11:42 AM Reply Like
  • chopchop0
    , contributor
    Comments (5171) | Send Message
     
    3 years? can't imagine it's that much, unless you bought in at very top I suppose
    13 Nov 2012, 12:38 PM Reply Like
  • frednrc
    , contributor
    Comments (14) | Send Message
     
    Obama will probably initiate legislation to forgive mortgage principal payments and tell all of the myriads of upside down mortgage holders they only have to make interest payments to their respective lenders.

     

    This may kill all of the REITs. I sold all 160K of mine today.

     

    Amen on the dividend vaporization comment.
    14 Nov 2012, 02:41 PM Reply Like
  • frednrc
    , contributor
    Comments (14) | Send Message
     
    CMO announced that they would buy back shares before the election.
    As far as I'm concerned NLY will react just like CMO.
    Look what happened to CMO during the last two weeks.
    I'm not willing to use my Scottrade account like poker chips at the newest casino in town.
    14 Nov 2012, 02:59 PM Reply Like
  • frednrc
    , contributor
    Comments (14) | Send Message
     
    All of these REIT executives are scrambling so they can milk out a few extra weeks of outrageous salaries before all of this sector tanks.

     

    Don't believe me? Talk to your broker if you have one!
    14 Nov 2012, 03:05 PM Reply Like
  • frednrc
    , contributor
    Comments (14) | Send Message
     
    Forget about the divi's; this was great equity investment if you timed it right. The divi's were barely keeping up with the "real" inflation anyways.
    14 Nov 2012, 03:09 PM Reply Like
  • frednrc
    , contributor
    Comments (14) | Send Message
     
    Look what happened while we were writing of this! Need I say more.
    14 Nov 2012, 03:16 PM Reply Like
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