Jonnycars

1 Comment

    • ON: Mon Feb 25th 09:16 AM
      Commented on:
      Annaly Capital: Outstanding Performance in a Down Market
      I have followed Annaly for a number of years and know that they have a great management team. But some of the arguments here are flimsy. A 6.6% dividend yield and a 162% revenue growth are meaningless when trying to determine whether Annaly represents a good investment at this point.

      The major driver of earnings and int turn the stock price will be the shape of the yield curve. Annaly's strategy works extremely well when we have a positively shaped yield curve and low interest rates overall which we have now. But any sign that the current interest rate environment reverts to more unfavorable conditions could be lethal for the stock.

      I am not saying that there is going to be an imminent change in the interest rate environment. What I am saying is that there is risk here and one should be familiar with those risks.

      Disclosure: I have no position in the stock.
      View article »
Contribute an Article Become a Seeking Alpha Contributor