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To: Paul Senior who wrote (81121)	8/8/2009 1:14:38 PM
From: Dale Baker	Read Replies (1) \| Respond to of 118717

You've covered what I should have posted about CYS, LOL. It was mentioned to me by the same person who mentioned AGNC back in the low teens, same business model. I like finding vulture funds in distressed asset markets.

To: Paul Senior who wrote (81121)	10/23/2009 3:03:41 AM
From: Paul Senior	Respond to of 118717

Decided I don't understand CYS business model, and closed out my position. Company buys forward selling purchases apparently so they don't get interest, which if they as a reit structure did get, they might have to pay to us shareholders. Instead they get a discount to the item they're buying, and that discount flows to the balance sheet as an add to net asset value. And that nav, as it rises, then becomes an item whereby CYS can grow by issuing stock, maybe below the then-nav, as we have seen so many bdc & reits doing. Which process, it seems to me, compresses the growth of nav and, I assume, consequently also compresses the stock price. To me it seems the company may be in some sort of wash/rinse/repeat function that seems too financially smart or manipulative for me. So this stock is not for me. Others may look at the business model better or differently. For now there's a 10-11% distribution, and that seems to be a good reason, and maybe the good reason, for buying and holding the stock at this point.