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Annaly Capital (NYSE:NLY) is a mortgage REIT I've covered before. My previous thesis in December was rather scathing, and I noted the preferred shares represented better income vehicles over the long term than the
Annaly Capital: Gauging Potential As Q2 Results Approach
Summary
- Annaly Capital's portfolio has had a tough couple of years, but cyclical opportunity may be ahead.
- Members of the Fed have given clearer signs that rate cuts are on the way, which benefit a portfolio like Annaly's.
- Yet the current price suggests fair valuation, not a price that mitigates potential risks that come with investing in NLY.
My articles are written with a mind to owning a stock for years, not trying to predict price movements in a few months. I don't do target prices; I do valuations.I first entered investing in 2020 as an individual value investor, keen to understand the fundamentals of businesses and buy their shares at attractive prices. From May 2022 to May 2023, I worked as an investment advisory representative at Fidelity Investments. I am now self-employed through other ventures.Part of my technique is to write an article as though it is a letter to my future self. I look at it as a chance for my ideas to improve and grow as I follow each company. As such, I tend to start from a place of caution. I used to write many Sell pieces. As of March 2024, I stopped doing that, and I simplified my approach to "Buy or Don't Buy." Many of my articles will either be Buy or Hold going forward. I have yet to issue a Strong Buy rating to any security.
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