The stock market rally that started on February 5^th, 2010 appears to be absolutely unstoppable. Bullet-proof. However you want to say it, there seems to be very little downside to stock prices, even after a strong rally.   

Now, we are not surprised. I’ve been relentlessly bullish here in Daily Profit. Sure, I may point out some discrepancies once in a while, maybe even shoot a few holes in the financial media’s neat and tidy explanations, but I’ve had us focused on upside targets for a year now, and there’s one main reason: earnings.   

This time last year, it was brutally obvious that analysts were seriously underestimating the earnings potential for bank stocks, even after the government changed the accounting rules to encourage profitability.   

And in subsequent months, analysts continued to lowball earnings estimates. Companies kept beating them, and the market kept rallying.   

Anworth Mortgage Asset Corp. (NYSE: ANH) shares plunged after investment bank Keefe Bruyette & Woods downgraded the Santa Monica, Calif.-based real estate investment trust to “market perform” from “outperform.” Keefe said the downgrade reflects concerns that Anworth will be forced to carry excess capital due to market uncertainty, which will hurt its growth potential.

In a note to investors, Keefe Bruyette said that widening spreads on agency mortgage-backed securities has made book values come down in 2008. In January, Anworth announced a plan to raise $90 million through a common stock offering of 11 million shares.

In afternoon trading, ANH shares are plummeting 25.2%, or $2.23, at $6.62. Over the last 52 weeks, shares have ranged from $3.05 to $10.29.

U-Store-It Trust (NYSE: YSI) CEO Dean Jernigan said the real estate investment trust, which owns self-storage facilities, might benefit from the housing market turmoil. Jernigan made the statements during a morning conference call.

“Along with marriage and divorce, I’m ready to add home foreclosures as an additional life-changing event that brings us business,” Jernigan said.

The chief executive said he noticed growth in rental rates in markets with high foreclosure rates, such as Detroit and Las Vegas.

I’m not ready to say there’s a positive correlation yet, because I don’t think we have enough time under observation and I think we will do a study at the appropriate time to look back and see if we can make a positive correlation,” Jernigan said. “I think it’s quite possible.”

For 2008, the firm expects a loss in the range of $0.12 to $0.10 per share. The company expects funds from operations, the most common measure of real estate investment trust operating performance, of $0.31 per share.

“We are affirming the full-year 2008 guidance and the underlying assumptions we introduced in the December release,” CFO Christopher Marr said.

U-Store-It’s January and February rental activity has met expectations, Marr said.

After Thursday’s closing, U-Store-It reported a fourth-quarter loss of $5.9 million, or $0.10 per share, compared with a loss of $5.7 million, or $0.10 per share, a year earlier. Analysts expected a loss of $0.10 per share.

American Campus Communities, Inc. (NYSE: ACC) shares are increasing moderately after the real estate investment trust announced it is buying the student housing business of GMH Communities Trust (NYSE: GCT) for about $1.4 billion. The deal includes outstanding debt of approximately $963 million.

American Campus’s board approved the agreement and the transaction is projected to close at the end of the second quarter. American Campus said in a statement that the deal includes the acquisition of 64 student housing properties as well as a minority interest in eight properties held in two existing joint ventures.

In morning trading, ACC shares are up 0.6%, or $0.16, at $26.61. Over the last 52 weeks, shares have ranged from $23.18 to $31.68.