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NCT

Newcastle Investment Corp.

5/25/2013, 12:17 PM ET

Quote & Headlines Market Currents StockTalk

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Thursday, May 23, 8:49 AM Just spun off from Newcastle Investment (NCT), New Residential (NRZ) gets busy, announcing a co-investment with Nationstar Mortgage (NSM) in a recent acquisition of MSRs with UPB of about $23B. New Residential is investing about $38M in exchange for one-third of the monthly cash flow, net of a fee paid to Nationstar, which will perform all servicing functions. All of the mentioned companies are in the portfolio of Fortress Investment (FIG), which has also acquired one-third of the cash flows. (PR) Comment! [Financials]
Wednesday, May 22, 12:00 PM After more than tripling since its (unloved) IPO 14 months ago, Nationstar Mortgage (NSM) is the subject of a glowing writeup in Forbes - "A jewel in Fortress' (FIG) portfolio." Mortgage servicing is recognized as a great business now and Nationstar - along with Fortress-owned Newcastle (NCT, NRZ) - Ocwen (OCN) and Walter (WAC) are currently the favorites of the mortgage gorillas, Fannie and Freddie. 2 Comments [Financials]
Wednesday, May 22, 10:16 AM New Residential (NRZ) is initiated a Buy with $7.50 price target at Credit Suisse following its spinoff from Newcastle (NCT -1.4%). Earlier, Newcastle was downgraded to Hold at KBW. Comment! [Financials]
Wednesday, May 22, 9:58 AM Newcastle Investment (NCT -2.5%) continues a bit of a post NRZ-spinoff tumble as KBW downgrades from Buy to Hold with price target of $5.50. The combined value of the two now stands at $12.44, roughly the level just ahead of the spinoff. 4 Comments [Financials]
Thursday, May 16, 12:51 PM Midday top 10 gainers: EGLE +46%. NBG +24%. SBSA +23%. DQ +22%. GNK +19%. AEGR +19%. GLBS +17%. SINO +17%. PRGN +16%. LWAY +16%.
Midday top 10 losers: NCT -54%. SNFCA -22%. ONTY -21%. INFI -19%. CNIT -15%. CYCC -14%. PTSX -14%. AMD -13%. BDCO -11%. TRIT -11%. 2 Comments [On the Move]
Thursday, May 16, 9:14 AM Premarket gainers: RGDX +24%. EGLE +23%. EFUT +19%. TSLA +13%. CSCO +13%. SCTY +11%. DQ +9%. HALO +8%. DANG +7%. AV +7%. YRCW +8%. NBG +7%. KSS +7%. SPWR +6%.
Losers: NCT -53%. SNFCA -24%. AMD -10%. NQ -7%. CYCC -5%. Comment! [On the Move]
Thursday, May 16, 8:06 AM The spinoff of New Residential (NRZ) from Newcastle Investment (NCT) has been completed and NRZ will begin trading on the NYSE today. At the moment, NCT is indicated to open at $5.83, NRZ at $6.70 - a total of $12.53 vs. yesterday's NCT close of $12.33. (PR) 17 Comments [Financials]
Tuesday, May 7, 10:47 AM Mortgage servicers all move higher after a big earnings report from Nationstar (NSM +5.7%). Nationstar cousin Newcastle (NCT +2%), Ocwen (OCN +2.4%), Walter Investment (WAC +2.1%). Scale is key in the servicing business, and Nationstar has increased its UPB by an average 104% annually since 2008 (presentation). Another nice profit center is originations, and they're expected to more than triple this year, helped by the immediately accretive acquisition of Greenlight at 0.7x AEBITDA. 1 Comment [Financials, On the Move]
Friday, May 3, 6:18 PM After-hours top gainers, as of 5:30 p.m.: ABFS +16.0%. RNR +3.75%. MSG +3.3%. NCT +3.1%. INCY +3.0%.
After-hours top losers: STM -9%. GRMN -3.6%. BRCD -2.7%. H -2.6%. CPWR -2.1%. Comment! [On the Move]
Friday, May 3, 12:42 PM "Loving (the) mREIT (MORT -2%) pullback," says Tom Akin, who - in addition to being CEO of Dynex Capital (DX) - runs an income-focused hedge fund. A longtime bull on Newcastle Investment (NCT -0.5%), Akin says if it drops below $5 post the New Residential spinoff, it's the one to buy. In when-issued trading, NCT is at $5.10 (NRZ's at $6.67). 14 Comments [Financials, Quick Ideas]
Friday, May 3, 9:27 AM Newcastle Investment (NCT) reverses a knee-jerk drop on its earnings miss and turns 1.6% higher as the earnings call moves forward (presentation). Forget the earnings in Q1 says one bullish trader, as things were in flux with the New Residential (NRZ) spinoff. Instead, look at the big jump in book value, $1.21 to $7.07 - blowout growth, especially considering MSRs add nothing to GAAP book (that's why the banks are unloading them). 1 Comment [Financials, On the Move]
Friday, May 3, 7:17 AM More on Newcastle Investment (NCT) Q1 earnings: Core EPS of $0.16 off from $0.19 in Q4, $0.33 a year ago. Average uninvested capital of $630M throughout quarter knocked $0.12 off EPS ($80M secondary didn't help either). New Residential (NRZ) assets include 8 excess MSR investments with carrying value of $519M, non-agency MBS with carrying value of $519M, a 70% interest in a reverse mortgage loan pool with $83M UPB, and agency MBS worth $1.1B. Average IRR for excess MSRs is 19% vs. modeled 17%. Shares -1.8% premarket. CC at 8:30 ET. (PR) 2 Comments [Financials, Earnings]
Friday, May 3, 6:15 AM Newcastle Investment (NCT): Q1 EPS of $0.16 misses by $0.13. (PR) 1 Comment [Earnings, Breaking News]
Saturday, April 27, 9:19 AM The combined valuation of Newcastle Investment (NCT) and spinoff New Residential (NRZ) could exceed $15/share, according to the investor presentation which sees the two generating $1.11 in dividends. New Residential's peers sport an average dividend yield of 7.2% and Newcastle's, 7.7%. However, healthcare REIT yields are closer to 4%, and Newcastle should approach that figure as it builds its senior housing exposure. (earlier) 5 Comments [Financials, Quick Ideas]
Friday, April 26, 2:06 PM Efficient markets? Newcastle Investment (NCT +2.5%) shoots higher after announcing May 15 as the spinoff date for New Residential (NRZ). It's not as if this is news (other than the exact timing), yet investors have rushed in to buy. One week ago, UBS noted the absurdity of anybody selling on the idea the spinoff wasn't going through. (PR) 2 Comments [Financials, On the Move]
Friday, April 19, 2:45 PM Newcastle Investment (NCT +4.5%) is reiterated a Buy with $14 price target at UBS, the team noting the stock is off 14% in a month partly on concern over the delayed spinoff of New Residential. The delay, says UBS, is likely the result of extra filing requirements associated with the acquisition of HSBC servicing assets. The completed registration is probably imminent, and will allow investors to again focus on valuation of the entities - NCT $6 and NRZ $8, according to UBS. 2 Comments [Financials, On the Move, Quick Ideas]