Annaly Capital Management, Inc. (NLY): Not Suitable for the Weak-Hearted and Impatient

Annaly Capital Management, Inc. (NYSE:NLY) continues on a falling trend, and analysts began to wonder whether the stock has reached the point where investment can be reconsidered. A high dividend quarterly pay-out and a cheap price make the stock very attractive. But, associated risks remains high, the stock dipped a further 2.13% on Tuesday, and uncertainty continues over the Fed’s action on market.

The mReits sector remains very weak, and investors should be very careful today when taking a position. At the moment it is very clear that the sector has found no growth catalyst. Although stock prices for CYS Investments Inc (NYSE:CYS), AG Mortgage Investment Trust Inc. (NYSE:MITT), and American Capital Agency Corp. (NASDAQ:AGNC) were up on Tuesday, there is no clear trend to be identified yet. Hence, it is hard to predict where the sector is going to and if it holds any potential for growth.

On the good side, Annaly Capital Management, Inc. (NYSE:NLY) has garnered enough expertise to stay afloat amid great difficulties.

The company has managed to recover from the big blow of Great Recession, but 2013 has proven a tough year. So tough, that stock is trading at prices lower than those registered through the Great Recession itself. And, should the trend continue, the stock will reach 2005 low levels ($10.94). That is, $3 over the all-time historic low of 1998 ($7.25).

The activity within investment “gurus” is mixed. While Charles de Vaux continues to increase his share, and Steven Cohen returned with a small position after opting out last year, Chuck Akre reduced his position from 2,534,525 to 33409 shares. Up until now, Chuck Akre was the largest guru holding stock from Annaly Capital Management, Inc. (NYSE:NLY).

What does Chuck know that we don’t? I will let his actions speak for themselves, and leave you to interpret them as you like. One thing is for sure, uncertainty over the stock remains high and it reflects upon the gurus’ mixed actions. If you are thinking about investing on Annaly Capital Management, Inc. (NYSE:NLY), or any other mREIT stock, please be aware of the risks involved and do not expect any profits in the short-term. Also, keep an eye on government announcement since measures taken are expected to have a relevant impact upon the sector.

Disclosure: Jodor Jalit holds no position in any stocks mentioned

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Annaly Capital Management, Inc. (NLY), American Capital Agency Corp. (AGNC): Are Rates Headed Higher?

American Capital Agency Corp. (AGNC), Annaly Capital Management, Inc. (NLY): What’s Happening To Agency Trusts?

Latest on REIT: Annaly Capital Management, Inc. (NLY)’s Dividend, Chimera Investment Corporation (CIM)’s Extension, CYS Investments Inc (CYS)’s Price Target