Don’t miss this mortgage bet. (July 23, 2012)

I’m Dan Fitzpatrick at
on Monday, July 23rd. Today I want to look at
Annaly Mortgage ( $NLY Annaly Capital Management, Inc. ). The first thing you need to know about this is a 12.9
percent dividend yield and they’re in the habit of paying them, okay, so that’s a
good thing. Also they’re in the real estate business, particularly or specifically,
in the real estate mortgage business. With interest rates as low as they
are, and this being an election year to where the government’s really not going to
let too much bad happen to that industry at this particular point in time, there’s no wonder why Annaly ( $NLY Annaly Capital Management, Inc. ) is moving
up here, so this is my trading idea here. The stocks trickling right around the
50 day moving average as it’s moving higher you look at the weekly chart and it’s coming off of a double bottom,
you could even call it a triple bottom if you want, but let’s just go for the
last two. We’ve got the 200 day or 40 week moving average starting to
trickle higher; this is coming right up above this last resistance level here,
this is a stock that I think you could buy now as long as you have a longer
term time horizon. Remember, you hold the stock for a year, you get
paid 13 percent for doing that, which is about 10 times the amount that
you’re going to get for buying a treasury bond, so think about that. Okay
members get over to the Strategy Session; we’ve got a lot of stuff to go over
after today.

Paul Whisler

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