New Residential Investment Corp. 2020 Q1 - Results - Earnings Call Presentation

The following slide deck was published by New Residential Investment Corp. in conjunction with their 2020 Q1 earnings call.

Comments

[mancity]

hi, i am merely saying that i will give it a year and see where it goes, already it has moved north only ever so slightly mind

[mancity]

I have no choice but to hold if I bail now I lose about 14k, I will give it a year and see how it looks then

[MegaDivGuy]

Are you suggesting that the "sunk cost" theory is invalid in your particular case?

There is no "getting back what you lost", because today, it isn't worth the former price, it's worth what the market will pay.

I have an enormous holding and reliance on NRZ. In the past few days, however, I've been selling some shares to invest in well regarding preferreds that are yielding between 7.5-9.5%. NRZ-A, for example, is around 8.75% at the moment, while NRZ is at 3% for the moment.

[sts66]

MDG, mancity is talking about not turning an unrealized loss into a realized one, hoping NRZ's price recovers so his losses are smaller - so he hasn't lost anything yet, it's just on paper. However, in many cases I've held a stock and waited for a price recovery that never happened, sat there with dead money for way too long - recovery usually didn't happen because something fundamental had changed for the worse, so I would have been better off just biting the bullet and taking the loss. Have done that with a couple stocks lately because CV-19 will affect them for at least several years, sales cratered, divs cut or suspended - no point in hanging on to those. NRZ comes close to fitting into that box, but my basis is low enough that I'm sure I'll be back in the green before the end of the year so I'm going to be patient.

[bayousaint]

Unlike for the oil companies, where things have permanently changed, I don't see how the demand for mortgage services has fundamentally changed. People are going to want those services, and to hold onto their houses, they will have to pay their mortgage eventually. Jobs will come back, be shifted some perhaps, but fundamentally as long as people want and use mortgages, there will be demand for what NRZ does. I'm sticking around, and when they bump the dividend back, I think there will be a snap back in NRZ shares.

[ArtfulDodger]

The dividend slash is not one of my favorite things to happen because of this government slam down on the economy. We're not getting paid much to hold this company until it turns around.
Did anyone see that 66% of NY's COVID-19 patients were shelter in people, and over 85% of them were 80 or older? That puts a huge question on whether isolating 330-million healthy people was not a huge mistake!

[kmi]

Cuomo can note that at-home folks are the problem but can't make the logical next step to reopening the economy because right now he is playing politics waiting on Package4 for a NY state bailout.

This is the same guy who is going to TAX the folks who he invited to NY to help support the healthcare system, doctors nurses and other professionals who came to NY just to lend a helping hand. Now they will have to hire accountants and whatnot to navigate the complex NY state tax system. What a guy....

[sts66]

Get your facts straight - 66% of NEWLY hospitalized patients were shelter at home, and 20% were 81 or older - 73% were 51 or older:

www.cbsnews.com/...

Does make you wonder how they're getting infected though - if it was from food and groceries delivered to their doors by asymptomatic but infected people you'd see a spike in the younger population too, but it's not there.

[jbruning]

It simply means that present shelter-at-home tactics do not stop the spread. (Anyone who understands viruses should know that's it is near impossible to stop the spread. If it's going to spread, it will happen eventually.) It's important to note that the current "expert" being followed, Dr Fauci, is an immunologist - and one who is primarily interested in setting up vaccines, which he can profit from. Patent work is a big focus for academics and those still working closely with universities. I do not trust that he is concerned with the idea that we start interacting, and build real immunity.

[joanet]

yes,total of true BV ~$14.63

[MegaDivGuy]

$517.3M cash, music to my ears! :)

Off Balance Sheet BV = $3.93/share: OMG!

Poised to make judicious acquisitions of deep value assets . . . If only the future were now; those with patience will be well rewarded.

[zenstar666]

Please explain why BV of $3.93/share warrants optimism when current market is $6.52/share. Am I missing something?

[InvestInMETA]

That’s because the real book value is $10.70... not sure what he’s talking about.

[twhite113]

He's saying add an additional ~$3.93 to the stated book of $10.70, or a total of true BV ~$14.63