Rithm Capital Corp (RITM)

[jugs]

Those of us who have been in this pick for awhile have done well. I realize it goes up and down as do all stocks but take a look at the broader picture and there's much to like.

As for the secondary, this is how such companies are able to underwrite moves representing opportunity to climb in value. The money to fund acquisitions must come from somewhere. This would be appreciably different were it not for the fact that distributable cash must be paid out in the form of regularly scheduled distributions. And the basis on which distributable cash is determined ties in directly with net gains following disbursements. In short, when there's profit, WE, the unitholders, receive it. This is not at all like the c-corp which pays as the BOD decides but only after the Directors agree on employment considerations (salaries and perks aka options) and especially when the company's BOD gives thought as to how much net $$ should be held back for future needs/issues/difficulties.

A REIT operates similarly to an MLP such as is found in the energy sector. There are constraints mandated by the SEC and IRS.