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  • New Residential Investment declares $0.45 dividend [View news story]
    Anylists are already scrambling to increase thier price targets, even though they just raised them a month or two ago. Surprise, surprise!

    "FBR & Co. reissued their outperform rating on shares of New Residential Investment Corp (NYSE:NRZ) in a research report released on Wednesday morning. FBR & Co. currently has a $21.00 price objective on the real estate investment trust’s stock, up from their previous price objective of $18.00.

    NRZ has been the subject of a number of other recent research reports. Analysts at Sterne Agee CRT reiterated a buy rating and set a $18.00 price target (up previously from $16.50) on shares of New Residential Investment Corp in a research note on Saturday, May 23rd. "
    May 29, 2015. 04:06 PM | Likes Like |Link to Comment
  • Mortgage Servicers Could Do Well This Quarter [View article]
    I agree with you that NSM should have a great quarter
    May 22, 2015. 03:32 PM | Likes Like |Link to Comment
  • New Residential Has Significant Dividend Growth Potential And 20%+ Upside [View article]
    The CEO believes the stock is undervalued and the assets are more stable than people give them credit for, so he is saying the price should go up and the yield should therefore come down. Also, as they raise more capital in the future, the higher the price, the more accretive the offering and also the more money FIG can manage and get money from. I personally don't like FIG as an external manager, since they take so much money in fees...but that is life on wall street.
    May 20, 2015. 10:05 AM | Likes Like |Link to Comment
  • New Residential Investment Corp.: On The Road To $20? [View article]
    Yes, the CEO said thy hope to earn 2 to 3 BILLION in the coming years from the call rights alone. NICE :-)
    May 18, 2015. 01:06 PM | 1 Like Like |Link to Comment
  • New Residential Has Significant Dividend Growth Potential And 20%+ Upside [View article]
    Management has actually stated several times that they want the yield be around 8%, like HLSS traded at before its troubles. See the 2014 3rd quarter conference call ;-)

    The big unknown for earnings going forward is now the call rights. On the last conference call, the CEO said they have the potential to earn 2 to 3 billion (yes, that billion with a B) over the coming years from the call rights. With a market cap of around 3 billion, that means NRZ could actually earn it's market cap in the coming years just from call rights alone.

    They will be making around 2% or so, off of around 100 to 125 Billion worth of call rights if all goes well in the coming 5 to 6 years. See the most recent company presentation and conference call for more details.
    May 18, 2015. 01:03 PM | 1 Like Like |Link to Comment
  • New Residential challenges new highs after dividend hike [View news story]
    I think an 8% yield is very reasonable.
    May 15, 2015. 08:42 PM | 1 Like Like |Link to Comment
  • New Residential Investment declares $0.45 dividend [View news story]
    This is great news, especially since on the Conference call they said they have 375 million of cash still on hand, which means there was a large drag on 2Q earnings. Just think of what earnings will be like once all of the cash is invested :-)
    May 14, 2015. 07:15 PM | 3 Likes Like |Link to Comment
  • New Residential Investment: Analyzing Future Earnings Potential After The HLSS Purchase [View article]
    Great news. I was not expecting a large dividend increase until around Q3, especially since they just said on the CC that they still have 375 million in cash on hand, which means Q2 earnings will not be as good as they should have been. But, it looks like they were at least around $.45 cents for Q2!
    May 14, 2015. 07:13 PM | Likes Like |Link to Comment
  • New Residential Investment's (NRZ) CEO Michael Nierenberg on Q1 2015 Results - Earnings Call Transcript [View article]
    NRZ call rights potentially worth 2 to 3 billion of earnings in the coming years. WOW!!! They are currently marked on the books around zero also!
    May 12, 2015. 12:09 AM | 1 Like Like |Link to Comment
  • New Residential Investment: Analyzing Future Earnings Potential After The HLSS Purchase [View article]
    If there were a recession, then there would be more forecloses and then cash flow would go down from the excess MSRs and servicer advances. How far it would go down is anyone's guess though. They could also loose money on their non-agency loans if they went bad during a down turn. So this company is definitely a play on the recovering housing market and rising rates. If the housing market goes down the tubes or interest rates for mortgages go down really low to 1 or 2%, then you would not want to be left holding this stock. If NSM has trouble in the future, that would also directly or indirectly cause trouble for NRZ, like what happened with HLSS.
    May 11, 2015. 12:15 PM | Likes Like |Link to Comment
  • New Residential Investment: Analyzing Future Earnings Potential After The HLSS Purchase [View article]
    They should be able to maintain earnings going forward. They have a "flow" agreement with Nationstar that has been more than replacing the run off. So as long as Nationstar can keep originating mortgages, they will then sell off most if not all of the excess MSRs to NRZ. I would think it will be the same with Ocwen, which is why NRZ wanted to keep them as a servicer. So with both of them giving them the "flow" of excess MSRs from mortgages originated, they should have no problem maintaining earnings. This is also excluding if other banks off load more MSRs, which will help NRZ in the coming years. Add in servicer advances non-agency loans which they buy for the call rights, and that should be enough things to buy in the future to maintain earnings.
    May 10, 2015. 08:50 PM | Likes Like |Link to Comment
  • New Residential reports; investors to hear management on HLSS purchase [View news story]
    They did not mention it. I was hoping someone would ask about it, but no one did.
    May 8, 2015. 08:29 PM | Likes Like |Link to Comment
  • New Residential Investment: Analyzing Future Earnings Potential After The HLSS Purchase [View article]
    Golden nuggets from the 1st quarter conference call:

    Call Rights: They are currently marked around zero on the balance sheet, but they expect about $2.00 worth of earnings to come from them in the next few years.

    Dividend Payout: CEO said they plan on paying out 95 to 100% of earnings.

    Projected Dividend: CEO sees a stable earnings of around $2.00 per share in the future.

    Excess MSRs are mostly credit impaired mortgages, which means they won’t fluctuate as much with a drop or rise in interest rates.

    On a personal note, core earnings were great and better than I was expecting, as I thought the cash sitting on the balance sheet might eat up some earnings potential. On the other hand, I was disappointed in the GAAP earnings. I was hoping they would come in higher, especially since they sold so much of their loans off at a profit. I was hoping book value would then in turn be higher too, but it went down slightly.

    It does look like they will be hitting around $.50 per share per quarter though by the end of the year if all goes well ;-)
    May 8, 2015. 02:43 PM | 3 Likes Like |Link to Comment
  • New Residential reports; investors to hear management on HLSS purchase [View news story]
    Golden nuggets from the 1st quarter conference call webcast I just listed to:

    Call Rights: They are currently marked around zero on the balance sheet, but they expect about $2.00 worth of earnings to come from them in the next few years.

    Dividend Payout: CEO said they plan on paying out 95 to 100% of earnings.

    Projected Dividend: CEO sees a stable earnings of around $2.00 per share in the future.

    Excess MSRs are mostly credit impaired mortgages, which means they aren't as sensitive to the drop or rise in interest rates. Thus why they didn't have as bad a quarter as other MSR companies.

    On a personal note, core earnings were great and better than I was expecting, as I thought the cash sitting on the balance sheet might eat up some earnings potential. On the other hand, I was disappointed in the GAAP earnings. I was hoping they would come in higher, especially since they sold so much of their loans off at a profit. I was hoping book value would then in turn be higher too, but it went down slightly.

    It does look like they will be hitting around $.50 per share per quarter though by the end of the year if all goes well ;-)
    May 8, 2015. 02:42 PM | 1 Like Like |Link to Comment
  • New Residential Investment reports Q1 results [View news story]
    Core earnings were better than I was expecting. I thought it might have suffered some due to all cash sitting on the sidelines for the HLSS purchase.
    May 8, 2015. 09:23 AM | 1 Like Like |Link to Comment
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