Annaly did a secondary. It raised $1.3 billion at $17.30. This caused its stock to fall.
The $1.3 billion is a good thing. It gives the company more money to invest. Says Todd, ‘It will be accretive to earnings.” In English that means earnings will rise. Says Todd, “Any time these companies fall because of a secondary, I buy.”
Annaly is now yielding 14.7% which is handsomely better than a slap in the belly with a cold fish.
This is Annaly over the past three years. When you earn such a high dividend, you don’t expect huge capital appreciation. You’re pleased if the stock holds its own.
Borders Group, the number-two U.S. bookstore chain, filed for bankruptcy after management changes, job cuts and debt restructuring failed to make up for sagging book sales in the face of competition from Amazon and Wal-Mart. I tried to sell Borders stock short but couldn’t borrow any shares. And I couldn’t figure out how to do a naked short. Selling a company’s stock short which slides into bankruptcy is the absolute best trade. You get all your money when you sell short. You never have to cover. You never complete your transaction. Hence no taxable event. No taxes. I’m guessing this still works.
All You Need to Know About Why Things Fell Apart by Michael Lewis. Not his best piece, but OK. click here.
SAC Capital’s Steve Cohen Opens Up. He doesn’t say much. But he does mention his favorite stocks — Williams Companies, Plains Exploration, and Green Mountain Coffee Roasters. read the piece. Click here.
The battle of the cell phones. Everyone loves their own phone. AT&T works good some place, lousy in New York City. Dan Critchett, reader, emails useful advice:
Hi, Harry. If you reboot your iPhone, you might not have your problem. It’s got something to do with tower memory. Sut it off, Travel someplace else. It still thinks you’re in the old place. Reboot. Everybody forgets the iPhone a computer and it needs rebooting at least once a day to clear cache and processes. If you press the home button twice, then press one of the icons at the bottom long enough to get them wiggling, you can shut down processes app by app. This (or just rebooting) can save you tons of battery time.
How to deliver a $7 million yacht.
85′ custom-built motor yacht complete with four state rooms, a state-of-the-art galley, GPS System and radar for navigation, twin supercharged diesel engines, etc. $7,474,793.
Champagne, chocolate covered strawberries with cream and music dockside for the excited ‘soon to be owner’ and a small group of his friends. $1,500.
Two corporate representatives, crane, and rigging $2,500 a hour minimum… complete with faulty $25 turnbuckle.
(Note the owner in the stern / back of the yacht)
Watching your 7 million dollar dreamboat nose dive into the harbor, accompanied by two corporate representatives from the company that built it just prior to ‘inking’ the final paperwork and handing over a 7 million dollar bank check.
PRICELESS! So, how was your day?
Harry Newton who admits to watching 1 1/2 hours of Comedy Central last night. First, The Daily Show, then The Colbert Report, then Tosh.o. These guys can be very funny. I laughed so much last night I cried. You can watch Jon Stewart and the Daily Show the following day on your comptuer. Just sign up for emails or go here.
Since you keep talking about the I phone, today New York state will add 2 points in addition to the $100 fine for talking on cell phones while driving.
Great Photos, it made my day a lot better than I thought it was. Sorry for the “almost” boat owner….. somebodies insurance agent may want to turn their cell phone off and not go to the office for awhile.