Annaly Capital Management (NLY - option chain) stock is trading lower today after the company priced a public offering of 75.0 million common shares at $17.20 per share. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on NLY.

This morning, NLY opened at $17.42. So far today the stock has hit a high of $17.45 and a low of $17.31. As of 12:05, NLY is trading at $17.41, down $0.46 (-2.6%). The chart for NLY looks neutral and S&P gives NLY a neutral 3 STARS (out of 5) hold ranking.

I have always felt that for all the blabbing we do -- or blogging, in my case -- we should try as best we can to be accountable for our good and bad calls. This report is long overdue, but I will post it anyway since all of my past year's picks and results have been made public.

The market was very harsh in the early part of 2009, filling investors fear and trepidation, and sinking to a March 9, 2009 bottom. Perhaps some of the bleeding has stopped, but the economy has not healed as bears and bulls seem to carry the day, or every other day.

When I read that economically troubled Greece has 10-year bonds currently yielding between 6.32% and 6.44%, I wondered why these have any worth at all given the many alternatives offering a better return and greater liquidity? This baffled me.

Only Tuesday, I wrote about Telecom Corp New Zealand (NZT), a stock paying over 10% yield. The story also mentions that AT&T, Inc. (T) is currently paying a 6.4% yield and Verizon Communications Inc. (VZ) is offering 6.25%. From my perspective, these are far better bets, safer and with some upside too than Greek debt.

Dividend Yield: 16.5%
Market Cap: $10.2 billion

Annaly Capital Management (NLY) is a real estate investment trust (REIT) that deals mainly in mortgage-backed securities. Though there is a lot of uncertainty around these instruments that started the mess on Wall Street in late 2008, Annaly is showing signs of stability with consistent earnings growth in each of the past four quarters.

Dividends are an often overlooked but crucial part of a successful retirement strategy. These quarterly offerings can provide a regular "paycheck" for retirees -- especially when the company is a high-yielding blue chip with a track record of boosting its dividend year after year.

But dividends don't just have to be a quiet way to grow your nest egg. They can really supercharge your returns when you buy into a great stock that also happens to be cash-rich. On top of the appreciation you see in your shares, you'll also get a great bonus checked mailed four times a year -- or more, depending on the dividend schedule.

The market continues to befuddle the bears as the third quarter earnings and stock prices continued to move in a positive direction.

During this period Washington has taken charge of the auto industry and helped prop it up with the "cash-for-clunkers" program. They continue to subsidize the real estate market with first-time home buyers incentives, and very low interest rates. The banks are being refueled by the Federal Reserve with interest rates as low as zero, while all the time currency stability has been sacrificed. This has driven gold prices to new highs.

This is the third review of my 2009 stock picks through September 30 (see: Chasing Value: 9 picks for 2009 -- APC, GE, ISRG, WFC and more). This years picks have annihilated index comparisons, so much so that I must attribute some of my good fortune to luck. However, I do believe the original reasoning was sound and the outlier nature of the gains certainly a result of an oversold market living in fear.

The 2009 clock is ticking loudly. The year has started off with a lot of continued turbulence. We have a new president, Barack Obama, who will boldly lead us where no man has gone before -- two trillion further in debt, most likely.

Not that this is his doing, but it is his chosen calling, and right now he is calling out to the Senate minority to compromise, and get yet another federal stimulus package off the shelf and out the door.

Without a doubt, I picked the worst possible time to buy MFA Mortgage (NYSE: MFA). Not long ago, I wrote about my desire to get in on MFA. Well, I did. And now I am paying for it, it seems.

I made a few buys between $7 and $10, starting at the high end of the range and then working down. Today, MFA got hit again; as I write this, it's trading around $6 (the low for the day so far is $5.96). My portfolio is certainly getting bloodier.

The mortgage REIT sector is having a tough time because of analyst price-target reductions and falling book values. Annaly Capital (NYSE: NLY) and Anworth Mortgage (NYSE: ANH) are feeling the heat. MFA also has been doing some reduction in terms of leverage, as this recent press release tells us. I'll be following the mnREIT story. For now, though, I'm not selling, and I think MFA is, as Merrill Ross, an analyst at Friedman Billings Ramsey, states, rather cheap at the moment (I know, I know, it can just get cheaper, can't it...).

Disclosure: Steven Mallas owns shares of MFA common and MFA preferred shares; positions can change at any time.

Michael Farrell, Chairman and CEO of Annaly Capital Management Inc (NYSE: NLY), is Jim Cramer's go-to guy when discussing the mortgage mess. Last night on Mad Money, Farrell said the subprime mess is only in the 3rd inning and has a lot more time to play out.

Annaly participates in the prime space and is not as affected by the subprime blow-up. But his words are worth listening to when looking at the entire mortgage industry. DR Horton, the Texas-based homebuilder, results support his view. Yesterday, the homebuilder reported net sales were down 37% and its cancellation rate dropped 32%. The results for the homebuilding industry remain weak and a quick rebound remains elusive.

As we have been blogging for a while, the subprime will take a while to play out. Continue to stay away from this sector.