Hard not to see this one coming. After a big run in its stock price, Newcastle Investment (NCT)...

Hard not to see this one coming. After a big run in its stock price, Newcastle Investment (NCT) announces a 20M share secondary, the proceeds of which will no doubt be put to work buying more MSRs. The offering will increase the float by about 12%. Shares -2.6% AH. (PR)

Comments (4)
  • TwistTie
    , contributor
    Comments (2429) | Send Message
    Correct, no surprise, but...




    That's the way it works.


    NCT is cool.
    11 Feb 2013, 04:44 PM Reply Like
  • Pinkrabbit
    , contributor
    Comments (198) | Send Message
    I have never understood why investors dump a REIT after an offering is announced. Dividends are not diluted. Proceeds are used to increase earnings. Offerings are the only way to grow Book Value because they cannot retain earnings for investments.
    11 Feb 2013, 07:14 PM Reply Like
  • hanakookie
    , contributor
    Comments (609) | Send Message
    Book value increasing not due to asset other that additional cash on hand. They are not diluting the divvy they are diluting the debt to make gains on the balance sheet. After a year I still don't see any real gains in cash flow. This is because its always been about the balance sheet and not what investor get cash flow. They are almost three times the size as a year ago, but cash to investor has only grown by maybe 50%. Quack, quack. Maybe they are a duck.
    11 Feb 2013, 09:45 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (6933) | Send Message
    Sounds bullish to me. And February is usually a down month for stocks.
    12 Feb 2013, 09:59 AM Reply Like
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