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Newcastle Investment (NCT) prices its secondary at $9.35/share, and upsizes the offering to 50M...

Newcastle Investment (NCT) prices its secondary at $9.35/share, and upsizes the offering to 50M shares from 40M for gross proceeds of $467.5M. As of Sept 30, the float was 172.5M shares. The stock gains another 0.4% AH to $9.64 after rising 6.8% in the regular session on news of what looks to be a profitable acquisition and the spin-off of its Excess MSRs. (PR)
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Comments (6)
  • tomoldfrt
    , contributor
    Comments (18) | Send Message
     
    I just hope that this doesn't bring down the price of the shares I own.
    8 Jan 2013, 02:29 AM Reply Like
  • Larry Gagnonl
    , contributor
    Comments (25) | Send Message
     
    Anyone have a guess as to why NCT is spinning off assets?
    8 Jan 2013, 07:33 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5585) | Send Message
     
    I hope the price of (NCT) falls a little so I can buy more shares.
    8 Jan 2013, 09:20 AM Reply Like
  • 166649
    , contributor
    Comments (356) | Send Message
     
    09-Jan-13 13:52 ET
    NCT

     

    Newcastle Investment: Target raised to $11 from $9 on announcement spin-off- Compass Point (9.88 +0.00)

     

    Compass Point raises their NCT tgt to $11 from $9 and notes that on January 7, NCT announced definitive plans to spin off certain residential assets establishing New Residential Investment Corp. In addition, the company announced a significant investment in two new excess MSRs totaling over $225B of UPB. In order to fund these investments, NCT issued 50mm shares in a secondary offering. While they expect the two announced excess MSR investments to be modestly accretive to run rate earnings, they believe the spin-off will focus investors on the value of the residential assets and provide further upside to shares.
    10 Jan 2013, 07:57 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5585) | Send Message
     
    How long will it take to reach that target? My assumption, not very long. But the spin-off means prices will fall as assets are spun-off. Thus, the price of the two companies should theoretically equal the price of (NCT) at the time of the spin-off.
    10 Jan 2013, 10:34 AM Reply Like
  • Larry Gagnonl
    , contributor
    Comments (25) | Send Message
     
    I really do not understand why NCT's spin-off would cause the share value of the two resulting companies to total more than the value of NCT prior to the spin-off.

     

    Earlier comment says that NCT expects the spin-off to "focus investors on the value of the residential assets".
    How is my vision blurred if those assets stay at NCT?
    Does anyone think this explanation is real?
    11 Jan 2013, 09:33 AM Reply Like
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