From Barron's 3-26-07 "When we spoke two years ago, we were short Annaly Capital Management [NLY], and we rode it down from the high teens to the low teens as short rates were rising and the yield curve inverted and it hit Annaly's book value and dividend-paying ability. We've since covered it and gone long. They own prime-agency mortgage securities with no credit risk, and they lever them with short-term borrowing, a pretty simple model. With the end of Fed tightening, the dividends will head back up and will accelerate to the upside if the Fed cuts rates."

From Barron's 3-26-07 "It is a $400 million market cap and it trades at only 87% of book. We love the guy who runs it, Lloyd McAdams, because he thinks like a shareholder and bought back a lot of stock when the shares were even lower than they are today, despite the fact that shrinking their balance sheet runs counter to his personal compensation in the short term. They own a greater percentage of adjustable-rate mortgages than Annaly does, and those will benefit more as they are reset upward..."

From Barron's 3-26-07 "If the Fed cuts rates, their REIT is a major beneficiary... If the Fed cuts, they will be quite profitable and have big dividends again, and the stock should trade up to or above book value."

From Barron's 3-26-07 "We are long Origen Financial [ORGN], a REIT and the only remaining player in manufactured-housing finance. With the end of the housing boom and a possible decline in home ownership, especially in the low end of the market, manufactured housing would benefit."