Sold Annaly

I sold my position in Annaly. I am looking to reduce my long exposure as we rise. I believe the stock is still undervalued but something had to go.

5 comments:

Anonymous said...

Operation Twist will flatten the yield curve. I believe that means dividend cuts lie ahead for NLY. They borrow on the short end and invest in the long. Given the retail nature of the stock there will be some stop order events triggerred by dividend cuts. Therefore I think it's likely there will be very good entry points in the future.

Tsachy Mishal said...

Still no reason it should sell below book. That means everything will have lower returns.

Anonymous said...

I agree it shouldn't, but when they cut the dividend retail sellers won't be looking at book value. That should create tremendous opportunities to get cheap stock. The next dividend declararation should be mid December.

ukarlewitz said...

Has a long history of increasing BV y-o-y as well. 

Nonetheless, if there is big mkt flush, it will trade at a big discount for some period of time. Everything will. 

I like what you are doing on this blog. Good stuff.

Tsachy Mishal said...

Thnx. A lot of the book value increase has been from issuing shares at above book. They did a couple of secondaries when the stock was above 18.