Friday afternoon I decided to buy Annaly Capital Management (NYSE:NLY) at $15.66 on the news that it was able to raise a billion dollars on a secondary offering. It’s not often that I piggyback on Jim Cramer, but I think he is dead on with this recommendation.
Annaly’s capital raise is a brilliant move here, as it gives the company a huge chunk of cash to buy distressed mortgage backed securities. Because of this capital raise, NLY is going to be able to capitalize on opportunities out there in the market. With a 6.6% yield and a bright future, I have to get behind this name.