Annaly Capital Management, Inc. ($NLY) Possible Buy to $16 Confident Investor Rating: Good
| Company name | Annaly Capital Management, Inc. |
| Stock ticker | NLY |
| Live stock price | [stckqut]NLY[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Poor |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $18.15 |
| Target stock price (averages with growth) | $18.26 |
| Target stock price (averages with no growth) | $12.74 |
| Target stock price (manual assumptions) | $13.98 |
The following company description is from Google Finance: http://www.google.com/finance?q=nly
Annaly Capital Management, Inc. (Annaly) owns, manage, and finance a portfolio of real estate related investments, including mortgage pass-through certificates, collateralized mortgage obligations (CMOs), Agency callable debentures, and other securities representing interests in or obligations backed by pools of mortgage loans. The Company’s wholly owned subsidiaries offer diversified real estate, asset management and other financial services. The Company’s subsidiary, RCap Securities, Inc. (RCap), operates as a broker-dealer. The Company also invests in Agency debentures, which consist of debentures issued by the Federal Home Loan Bank (FHLB), Freddie Mac and Fannie Mae. In August 2012, the Company liquidated FIDAC FSI LLC. In December 2012, the Company sold FIDAC Europe Limited. As of December 31, 2012, all of the mortgage-backed securities, which it has acquired, have been backed by single-family residential mortgage loans.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Annaly Capital Management, Inc.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Annaly Capital Management, Inc. calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $11.73
Growth: 0.15
Current EPS (TTM): $3.73
P/E: 3
Future EPS Calc: $7.5
Future Stock Price Calc: $22.5
Target stock price: $13.97
I hope that this makes you a better investor. [/s2If]
