Seeking Alpha

Newcastle Investment (NCT -4.5%) dives following a secondary offering of 20M shares (now upsized...

Newcastle Investment (NCT -4.5%) dives following a secondary offering of 20M shares (now upsized to 22M). Not a traditional mortgage REIT (i.e., not so exposed to the yield curve), Newcastle is more in the mortgage servicing business and presumably will use the raised funds to purchase additional rights. (PR)
Comments (9)
  • Everytime I am ready to click "SELL", NCT comes along and releases another 20M shares, tanking the price. What gives? I can't be the only investor PO'd at this repetitive action of theirs....
    26 Jul 2012, 10:50 AM Reply Like
  • Every time I am ready to sell, NCT decides to release another 20 million shares, tanking the price. Now I'm long for another long while....
    26 Jul 2012, 10:51 AM Reply Like
  • Don't sell NCT.


    The new money will be used to purchase assets that will produce more income.


    The balance sheet grows and then eventually the PPS.


    The dividend isn't directly affected.


    This is SOP for a REIT. They wait for the share price to go up, then sell more shares. That's how they grow.


    It's OK.
    26 Jul 2012, 11:15 AM Reply Like
  • As long as the divi stays consistent I will hold.
    26 Jul 2012, 12:18 PM Reply Like
  • wouldnt a stockholder be better off buying another investment like nly or agnc?
    26 Jul 2012, 02:12 PM Reply Like
  • I also own both of those and they are both excellent.


    With NCT, I'm expecting to get a better gain in the share price. That's the plan anyway.


    Also, I like to be diversified even it lowers the overall dividend rate.
    27 Jul 2012, 10:35 AM Reply Like
  • NLY and AGNC are higher priced, at around $7/share you get more shares and more bang for your buck with NCT or ARR
    26 Jul 2012, 06:12 PM Reply Like
  • i appreciate your response. thank you!


    what other dividend paying stocks do you own? anything in utilities, communications or gas/oil or pipelines you recommend that would be relatively conservative?
    28 Jul 2012, 02:44 PM Reply Like
  • i am an independent investor who is in retirement trying to get the most dividends and appreciation from my portfolio of stocks.
    28 Jul 2012, 02:45 PM Reply Like
DJIA (DIA) S&P 500 (SPY)