) reported a 2Q10 GAAP loss of $0.40 per share, EPS excluding trading gains of $0.59, and EPS excluding non-cash items of $0.66 per share. Our estimate of $0.71 per share was on the same basis as the $0.66 per share adjusted figure, and left the company with a shortfall in quarterly cash flow of $0.02 per share against the declared dividend of $0.68. The company raised over $1B in capital subsequent to period end, after having declared the $0.68/sh dividend, but prior to revealing the shortfall in operating cash flows supporting that dividend. We believe management risked its reputation with this strategy and will be driven to restore cash earnings power." Shares of Annaly are down 31 cents to $17.54.