Tag Archives: NLY

Forget About American Capital, Annaly Capital Is Still The Best Of Breed

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By Regarded Solutions:

I know all about the great performance that American Capital (AGNC) has had over the last three years. I have heard all too often that my decision to own shares of the more conservative, and time tested, agency backed mREIT, Annaly Capital (NLY), has cost me money. Sometimes it takes a while for issues to crop up, but crop up they did when AGNC reported earnings last week.

Not only did the company report a massive loss, but its book value dropped like a rock:

American Capital Agency Corp. (
AGNC
) today reported a comprehensive loss for the first quarter of 2013 of $(557) million, or $(1.57) per common share, and net book value of $28.93 per common share.

Whoops!

Maybe I am being cavalier about this, as any company in this business could find navigating the current interest rate environment difficult to say the least.


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Team Alpha Retirement Portfolio: Impressive Returns Plus Impressive Dividend Hikes

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By Regarded Solutions:

This month’s update for the Team Alpha Retirement Portfolio is unique. Not because the month was wonderful, actually the gains were minor, but because for the month of April, we made no major changes to the portfolio aside from swapping PFF for WFC. When all was said and done, the portfolio continues to show impressive gains.

The Team Alpha portfolio consists of Ford (F) Chevron (CVX) Apple (AAPL), McDonald’s (MCD), Exxon Mobil (XOM), Johnson & Johnson (JNJ), AT&T (T), General Electric (GE), BlackRock Kelso Capital (BKCC), KKR Financial (KFN), Procter & Gamble (PG), CSX Corp. (CSX), Realty Income (O), Coca-Cola (KO), Annaly Capital (NLY), Cisco (CSCO), Bristol-Myers Squibb (BMY), Healthcare Select Sector SPDR (XLV), and Wells Fargo (WFC).

I wrote this article, in which I stated that there are


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Is This Security A Safe Haven?

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mkaminisBy Markos Kaminis (Wall St. Greek):

Can a company dealing in the market for mortgage-backed securities and paying a double-digit dividend yield be a safe haven? When it has the nearly undivided support of investor capital flows and when it operates around a sector of the economy where recovery is widely expected to continue, the answer is yes. So, then as the economy deteriorates, as I expect it to over the next several months, I believe Annaly Capital (NLY) will not. Besides my own beliefs, there’s some hard evidence provided by historical data that shows Annaly Capital has safe haven appeal. Finally, for what it’s worth, one major stock market pundit agrees as well.


Chart at Yahoo Finance

This chart of NLY matched against the SPDR S&P 500 (SPY) does not necessarily look like the chart of a safe haven security, with NLY having just exaggerated the last market downturn into the close of the year;


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A Flight To Safety Or Crash And Burn?

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By Regarded Solutions:

I have been thinking about what will happen when (if?) the market, and our Team Alpha Retirement Portfolio, corrects (view the latest update here). Make no mistake about this; at some point the market will correct. I say IF, tongue in cheek, because throughout history every bull market corrects. This bull market will be no different.

Actually there is ONE difference, especially for us retired folks. In past market corrections, investors could park portfolio assets into fixed income securities, like Treasury Bonds. Since the equity markets were in a bull mode, interest rates for Treasuries were decent and the actual cost of the bonds were at or below par. A pretty good place for a “flight to safety”. In the very least, our money was just about keeping pace with inflation, and was safe by virtue of the fact that it was backed by the USA.

Now,


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The Truth About The Impact Of Dividend Reinvesting

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By Chuck Carnevale:

Introduction

There is a growing trend towards doing-it-yourself (DIY) portfolio management. Many individual investors have become disillusioned with professional investment management at various levels, to include mutual funds as well as custom-designed professionally-managed portfolios. Consequently, they have become motivated to take their financial futures into their own hands and manage their own portfolios.

Generally, I am in favor of this action as long as several conditions are met. First of all, the individual do-it-yourself investor (DIY) must be willing and able to commit the time, work and effort necessary to effectively manage a portfolio. They also need to have the proper tools and research at their disposal. In our Internet age, there are numerous free financial blogs and websites at the do-it-yourselfer’s disposal. However, there are also many reasonably priced research subscription sites that ought to be considered as well.

But perhaps most importantly, I believe that the individual do-it-yourself


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When The Fed Stops Buying These mREITs Could Be Flying

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By Regarded Solutions:

The never ending story surrounding Federal Reserves policies is a constant reminder to every investor that at some point the financial markets will change. I suppose the big question for investors is where to put money to work when that happens. I believe that when the Fed stops buying MBSs and longer term Treasuries, the agency backed mREIT sector will really start flying. Specifically, Annaly Capital (NLY) and American Capital (AGNC), the two “best of breed” companies in the entire sector.

To understand my thesis, let me review the Fed policies now, as well as what the mREIT sector might look like when (and if) the policies change.

To encapsulate the Fed’s policies, let me briefly outline them:

  • The Fed has a zero interest rate policy (ZIRP) that has kept short term Treasury yields (2 year terms) near zero (.25%).
  • The Fed spends $85 billion every month buying


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Annaly’s Continuing Metamorphosis

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By Zvi Bar:

Last week, Annaly Capital Management Inc. (NLY) filed a proposal with the Securities and Exchange Commission regarding a potential modification to its structure so that it would be managed by a new entity composed of the same people that presently run the mortgage REIT. This new proposed entity would be named Annaly Management Company. The decision on whether to make the change will be put to a shareholder vote at Annaly’s annual meeting on May 23.

Annaly, the largest mortgage REIT, has made some trailblazing moves within the agency mREIT industry, but this is not one of them. This structural change would make the REIT more like many of its competitors, such as American Capital Agency Corp. (AGNC), the second largest mortgage REIT, and Invesco Mortgage Capital Inc. (IVR), a large hybrid mortgage REIT.

One of the more notable changes that this structure will put in place is that


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Team Alpha And The Foundations For Financial Freedom

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By Regarded Solutions:

The way I look at financial freedom from a layman’s point of view might be simplistic to many folks who know so much more than I do. From where I sit it does not seem to be as daunting a task as some folks would have you believe.

I personally see the foundations of financial freedom having 4 separate, but very equal parts:

  • Investing in dividend paying, mega-cap, blue chip stocks, with a dash of growth potential stocks and dividend “opportunity” stocks.
  • Saving early, saving a lot, and saving some more.
  • Social Security, no matter how it is sliced and diced, is a main ingredient and cannot be dismissed.
  • Spending less than one has coming in, will forever be the ONE foundation that surpasses the rest.

It has only been about 15 months since we embarked on our journey of “seeking alpha” in our own small way by creating the


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