Oct

26

Sold NLY, Increasing short position in KFED, reinstituting short in HZO

October 26, 2007 | Leave a Comment

This afternoon I decided to sell the rest of my position in NLY at $17.09. I like the company as a rate cut play, but I’ve caught a nice move here, and there are more fun places to play from a volatility perspective here.

In addition, I decided to double my short position in KFED at $13.83. I’m going to write in more detail about KFED shortly, but in the meantime, I highly encourage people to take a […]

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Oct

19

Selling sizable long positions, going short, and buying gold

October 19, 2007 | 6 Comments

Today’s market is just plain ugly, and I am beginning to have serious worries about the economy flipping into a recession. In fact, the more I listen to companies guidance (CAT, UNP, etc). In fact, I am willing to bet that the U.S. is already slipping into recession, but we have yet to actually see it in the numbers. The way that both the stock and bond market have acted in the last few sessions is telling […]

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Oct

15

Adding more NLY on the dip

October 15, 2007 | Leave a Comment

This morning I decided to add to my position in NLY, increasing the size of the position by 80 percent at $15.63. Frankly, I don’t think people have woken up to the fact that NLY has an incredible competitive position as a result of their $1 billion capital raise. The stock has already received two upgrades since the news broke, and I believe there are several more upgrades in the works over the next few weeks as people […]

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Oct

12

NLY raises a billion dollars, looks like a buy

October 12, 2007 | Leave a Comment

This afternoon I decided to buy 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 […]

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