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Newcastle Investment Corp.

  • Spinoff May Hold Value for New Shareholders

    By Mike Thiessen - May 23, 2013 | Tickers: NLY, NRZ, NCT

    Although it had been expected for some time, the recent announcement that New York-based REIT Newcastle Investment Corporation (NYSE: NCT) had completed its spin-off of New Residential Corporation (NYSE: NRZ) was greeted with enthusiasm by investors who had followed the spin-off process. 

    Although Newcastle's stock did take a significant tumble on the trading day that followed the transaction's formal completion, this should not be taken to indicate a more »

  • DUPLICATE:Are Your Dividends Sustainable?

    By Adnan Khan - May 23, 2013 | Tickers: MTGE, NYMT, NCT

    Mortgage REITs have a special place in the hearts of investors thanks to the ultra-low interest rate environment, which has made their dividends extremely attractive. Given the 10-year Treasuries are currently offering only 1.94%, the double digit dividends offered by many mREITs attract the general investor. However, the prevailing macroeconomic environment is not ideal for a mortgage business model. Therefore, investors looking to invest in mREITs in order to more »

  • Are Your Dividends Sustainable?

    By Adnan Khan - May 23, 2013 | Tickers: MTGE, NYMT, NCT

    Mortgage REITs have a special place in the hearts of investors thanks to the ultra-low interest rate environment, which has made their dividends extremely attractive. Given the 10-year Treasuries are currently offering only 1.94%, the double digit dividends offered by many mREITs attract the general investor. However, the prevailing macroeconomic environment is not ideal for a mortgage business model. Therefore, investors looking to invest in mREITs in order to more »

  • Upside For These REITs

    By Adnan Khan - May 22, 2013 | Tickers: NSM, NRZ, NCT

    Newcastle Investment (NYSE: NCT) operates as a mortgage REIT with investments mostly in real estate securities, excess mortgage servicing rights and other residential loans. However, last week it split itself into two after a spin-off of New Residential Investment (NYSE: NRZ). I am bullish on Newcastle Investment because I believe the migration of the company’s portfolio towards a senior living property focus away from the commercial real estate debt more »

  • Reaching for Returns by Using Lower Priced REITs

    By Jeff Stouffer - May 8, 2013 | Tickers: ARR, DCT, IVZ, ROOF, NCT

    The explosive growth of exchange-traded funds has brought several sponsoring competitors to the marketplace. It is business as usual when new products are brought to market and all kinds of purveyors are seeking a foothold in the new frontier. There has never been, or will be, a shortage of product designers and marketers in the investment world. One such product family is the Index IQ group and one REIT based more »

  • Buy This Undervalued mREIT

    By Adnan Khan - April 26, 2013 | Tickers: NSM, NCT, PMT

    PennyMac Mortgage Investment (NYSE: PMT) reported better than expected first quarter earnings on April 23. The remainder of this article will review the latest earnings of PennyMac Mortgage and see whether its closest peers can benefit from the strength in their results.

    Financials

    A quick look at the latest financial disclosures of the company reveals that its reported earnings per share of $0.9 was $0.06 ahead of the more »

  • Did These Analysts Make the Right Calls?

    By Brian Nichols - April 22, 2013 | Tickers: NCT, OSTK, SIX

    During earnings season, analysts are hard at work to issue revised outlooks, upgrades, downgrades, etc. While many of these calls will move stocks on the call alone, investors shouldn’t fall victim to buying only because of the upgrade. In this piece, I am assessing three calls to determine whether they are good or bad and if the notes warrant the calls.

    Newcastle Investment (NYSE: NCT)

    On Friday, shares of more »

  • Insiders Are Crazy About These REITs

    By Meena Krishnamsetty - April 12, 2013 | Tickers: MTGE, ARR, NCT, SPG, TWO

    Company insiders should be strongly resistant to buying shares, since it increases company-specific risk rather than diversifying their wealth. Therefore, insider purchases should signal confidence in the company, and it turns out that stocks bought by insiders- particularly multiple insiders- do outperform the market on average (see our analysis of studies on insider trading).

    Real estate investment trusts (REITs) often pay high dividend yields, since these companies are required to more »

  • Weakened Mortgage Market Activity Creating Benefits For mREITs

    By Adnan Khan - April 5, 2013 | Tickers: AGNC, NLY, ARR, NCT, PMT

    Compared to the fourth quarter of the prior year, mortgage activity has weakened during the first quarter of the current year. Overall, mortgage applications plunged 8% over the linked quarter and 3% over the prior year. This decline in the Market Composite Index is largely due to an 11% decline in the refinance application volumes, partially offset by a 10% improvement in the purchase volumes compared with the fourth quarter more »

  • Recent Weakness in This mREIT Creates Buying Opportunity

    By Adnan Khan - March 25, 2013 | Tickers: DX, NCT, PMT

    Newcastle Investment (NYSE: NCT) largely invests in non-Agency distressed securities and operates in the United States as a mortgage REIT. The company has investments in real estate securities/assets, including senior living, loans, excess mortgage servicing rights (MSRs) and other real estate related assets.

    Investment Thesis

    The recent weakness in Newcastle Investment presents a buying opportunity as I am confident about the company’s fundamentals regarding its excess MSR investments more »

  • Catalysts Intact For This Mortgage REIT

    By Adnan Khan - March 7, 2013 | Tickers: DX, NCT, PMT

    Mortgage REIT Newcastle Investment (NYSE: NCT) reported fourth-quarter EPS that lagged analysts' expectations. While the earnings miss might look troublesome, there may be macroeconomic catalysts that can help the stock outperform in the future.

    Earnings review

    Newcastle Investment reported its fourth-quarter 2012 performance on Feb. 28. The earnings per share of $0.19 remained $0.09 behind Wall Street's estimate. I feel the earnings miss is nothing to worry more »

  • EPS Miss by This 15% Yielding mREIT

    By Adnan Khan - March 7, 2013 | Tickers: NYMT, NCT, PMT

    New York Mortgage Trust (NASDAQ: NYMT), which has a market cap of just over $350 million, disclosed its performance for the fourth quarter today. The performance remained behind expectation as the EPS of $0.19 remained $0.06 shy of the consensus mean expectation. This investment thesis aims to review the fourth quarter results and see how its diversified portfolio has affected the results.

    The Business Model

    New York Mortgage more »

  • Insider Buys Reported in these Stocks

    By Alex Bastardas - February 24, 2013 | Tickers: GLW, NCT, POWL

    Recent insider buying has been reported in the following stocks. Would it be wise to copy the insiders and buy some shares?

    Newcastle Investment (NYSE: NCT)

    This REIT invests in and actively manages a portfolio of real estate securities, loans, excess mortgage servicing rights (MSRs) and other real estate related assets.

    Insiders have been adding shares of NCT this year. Two gentlemen in particular -- Director Wesley Edens and Secretary Randal more »

  • Insiders Bought These Five Stocks Recently

    By Meena Krishnamsetty - February 21, 2013 | Tickers: BRE, KMX, MUR, NCT, SIAL

    We track insider purchases because we believe they serve as signals that company officers or Board members are confident in the stock’s prospects. This confidence has to be strong enough for an insider to ignore the benefits of diversification and actually increase their holdings of the stock. While insider purchases don’t always precede a rise in the stock price, on average stocks bought by insiders tend to outperform more »

  • Growth & Yield Drivers Remain in Place for PMT

    By Adnan Khan - February 13, 2013 | Tickers: NSM, NCT, PMT

    PennyMac Mortgage Investment (NYSE: PMT) operates as a specialty finance company that seeks to invest primarily in residential mortgage loans. The company has a market cap $1.52 billion and for the purpose of reporting PennyMac is divided into two: Correspondent Lending and Investment Activities. Under its Correspondent Lending function, PennyMac acquires newly originated loans from mortgage lenders, sells them to an Agency or a third party, or pools them more »

  • Buy This mREIT Despite Headwinds

    By Adnan Khan - February 12, 2013 | Tickers: AGNC, NLY, ARR, NSM, NCT, PMT

    PennyMac Mortgage Investment (NYSE: PMT) operates as a specialty finance company that seeks to invest primarily in residential mortgage loans. The company has a market cap $1.57 billion, and for the purpose of reporting PennyMac is divided into two business segments; Correspondent lending and Investment Activities. Under its Correspondent lending function, PennyMac acquires newly originated loans from mortgage lenders, sell them to an Agency or a third party, or more »

  • Legg Mason’s Top-Performing Small Caps

    By Meena Krishnamsetty - February 5, 2013 | Tickers: CSGP, EXH, FLT, NCT, RWT

    Small-cap and mid-cap stocks do not get as much coverage from bankers and third-party analysts, often leaving them less efficiently priced versus larger stocks. Hedge funds sometimes take advantage of this by dedicating their research teams to work on these lower-valuation stocks, and they often earn substantial alpha from their investments. Based upon our analysis of many hedge funds’ small-cap holdings, we’ve determined that the most popular small-cap stocks more »

  • Top Stocks With Significant Insider Buying

    By Alex Bastardas - January 23, 2013 | Tickers: HMA, NCT, SIRI

    Analysis on three stocks with recent insider buying

  • Will This mREIT Maintain its Healthy 13.5% Dividend Yield in 2013?

    By Jordo Bivona - January 3, 2013 | Tickers: AGNC, MTGE, NLY, CYS, NCT

    The Federal Reserve's recent quantitative easing has affected the mortgage REIT sector. Lowered interest rates have resulted in some homeowners refinancing their mortgages and reducing profits for mortgage REITs. However, mortgage REITs have been adjusting to the new business environment. Many of these companies have recently reduced dividends to more sustainable levels.  On the flip side, the program also keeps borrowing rates low.

    CYS Investments (NYSE: CYS) shares were more »

  • 3 High-Yield REITs Under $10

    By Mary Posey - January 2, 2013 | Tickers: NCT, NRF, RSO

    Real Estate Investment Trusts, or REITs, can be a good way to diversify any portfolio.  But especially so for the more long-term minded, conservative investor.  A REIT is not subject to federal income tax as long as at least 90% of its taxable income is distributed to its shareholders.  This causes most REITs to pay dividend yields above what one might find in the general stock market.  The real estate more »

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