Annaly Capital Is One of Few at New 52-Week High (NLY)

Shares of Annaly Capital Management (NYSE: NLY) are having a good day today amid broader markets that are down more than a percent for the second day in a row. In fact, Annaly's stock hit a new 52-week high at $20.22 after opening the day moderately lower, but shares have slightly fallen heading into the afternoon trading session, and the stock is only up $0.02 now, or 0.10%. Notably, Annaly is one of very few stocks that has hit a new 52-week high today.

Annaly had quite an amazing day yesterday, boosted by the Federal Reserve's emergency rate cut of 75 basis points. Following a cut to the Federal Funds and discount rates, financial stocks, such as Annaly, often outperform other sectors as their results are directly tied to such interest rates and will likely see positive results by the end of the week. Annaly surged about 8% yesterday, in light of the S&P 500 index starting they day down about 2.5%, and ultimately closing down a percent.

CNBC's Jim Cramer has been a recent proponent of Annaly Capital, and initiated a position in the Company for his charitable trust, ActionAlertsPlus, on December 27, 2007. Cramer is absolutely crazy about Annaly as it has a 7.5% dividend yield, insulating it from a possible U.S. economic downturn, and benefits greatly from the Fed cutting rates as a result of a slowing economy. Additionally, Cramer has gotten behind Annaly as the Company's CEO, Michael Farrell, has, according to the President of Cramerica, been called the "King of Mortgages". Jim has recently said Annaly "could trade through $20 in 2008".

Cramer may also like Annaly as, according to Reuter's statistics, Annaly could grow EPS at about 69% in 2008. Also, Annaly's net profit margins are about 15.45%, compared to an industry average of 9.93% as the Company only holds the highest quality agency-guaranteed mortgages.

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