Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

NewCastle a Stock ready to Soar to its historical mean.

|Includes:AGNC, BAC, BDN, BXP, C, CLNS, DEI, DRI, Drive Shack Inc (DS), EQR, FSP, FUR, GTY, HCP, MS, NLY, PSA, RWT, RYN, SPG, STAR, VNO, WFC

Once NewCastle uses up its Loss CarryForward, its shares should soar back to their historical mean of $25-$30 range.

Why would a $6.93/shr stock shares soar to their historical mean range, its called Hefty Dividend payouts.

For instance based on the last 9 months if there were no carry over losses, (NCT) would have paid rougly $7.20 eps in dividends based on the roughly $8 EPS it earned.

Why does (NCT) have to pay 90% of its earnings as a dividend you ask?

(NCT) is listed as a REIT in the tax code:

In order to avoid taxation at the corporate level, NewCastle, like other REITs, is required to pay out at least 90% of its taxable income as dividends to shareholders.
Therefore at $7/shr (NCT) would have a 100% dividend yield payout in the future based on the 9 months earnings so far this year .

Investors would flood into (NCT) to take advantage of the High dividend yield, sending the stock price higher therefore lowering the dividend yield per share payout.

On an historical mean the share price vs. dividend payout has peaked at $25 to $35/shr

Stocks: DS, AGNC, NLY, DRI, RYN, DEI, BDN, RWT, FSP, GTY, FUR, CLNS, VNO, SPG, BXP, EQR, PSA, HCP, STAR, C, BAC, WFC, MS