From a recent Mad Money show: "I think this is a business model that needs a lot of capital to survive. I'm not going back there again."

From a recent Mad Money show: "I think this is a business model that needs a lot of capital to survive. I'm not going back there again."

Buy - Price 13 on Sept. 30
by Sterne, Agee & Leach

Given the attractive spreads between [mortgage-backed securities] yields and borrowing costs...we think NLY should be able to deliver a mid-teens [return on equity]...our 17 target is based on a 30% premium to current tangible book value of 1 times...The shares...yield 16.9%, versus the agency-mortgage real-estate investment trust peer-group averages of 18.8%. Market cap: $7.7 billion.

dividends

MORTGAGE REITs: Annaly Capital Management (NLY), American Capital Agency Corp. (AGNC)

High dividend yield.

Cramer: Fannie and Freddie, Game Over: Jim Cramer discusses insolvency vs. bankruptcy and why these companies desperately need recapitalization.


Click here to watch the video.

And on a related note, options action in Annaly Capital (NLY)suggests this stock could soon mover lower, Najarian adds.

dividend

Annaly does have leverage of 8-to-1, so if Wall Street decides not to lend to it anymore, the company will run into problems. (Carlyle's leverage was north of 30-to-1.) Likewise, if short-term interest rates rise and long-term rates fall, the company's income will fall and the dividend will get cut. But given the current economic environment, Annaly's 13.9% dividend yield is a good bet.

Looks horrible

Too Risky

real estate is dead

It is a financial, so it must go down, right?

Real Estate

Div. 5.4%

no profits as of yet. may go on the chopping block soon.

CEO mislead us all last year. Tried to prop up the stock price.

lost money on this one. slow mover