Rithm Capital Corp (RITM)

[bar1080]

Ludicrous, the idea that everyone is going to "forgive" everyone else. Landlords forgive tenants. Lenders forgive borrowers. Utilities will forgive their customers. Municipalities will forgive those who owe taxes. etc etc.

"was just reading about forgiveness of rent payments somewhere." Bet that didn't come from a landlord! Or the landlord's lender.

[bar1080]

Even in best times, NRZ was almost impossible to analyze with its leverage and inscrutable hedging. Maybe a full time professional could make a stab at it. But nowadays things change wildly from day to day. And outside shareholders nave to rely on quarterly updates that are weeks old... at best.

Simple fact: Most investors buy stocks like this based on one thing: The Reported Distribution. And, short term, the highest distributions usually come from the junkiest, most reckless payers.

[barnyarddog]

Reads like over 10.00 stock near term.

[leftovers]

New Residential confirms move to unload $6.1B of non-agency debt

To reduce short-term financing exposure, New Residential (NYSE:NRZ) confirms that it has agreed to sell ~$6.1B face value of non-agency residential mortgage-backed securities to several buyers.

“While mortgage assets have stabilized relative to recent weeks, our focus in this environment continues to be de-risking, increasing our liquidity and protecting our book value,” said Chairman, CEO and President Michael Nierenberg.

The sales aren't expected to affect its previously reported estimated book value, which is expected to be down ~25%-30% from $16.21 as of Dec. 31, 2019.

[Solar_Express]

Great Article added today under 5 https://seekingalpha.com/article/4335332-panic-for-mortgage-reits-investors-are-asking-tough-questions

[leftovers]

Too bad they have put together the best plan for the next 2 quarters. US is going to have to come out of the denial fast.

They say 3 weeks before people receive any money and looks like you have to jump through hoops to be on the receiving end.

Based on the daily news I fail to see how this market will not continue to drop?

Canada has put together a great plan 2 checks 2 weeks apart banks and utilities will offer deferments on loans and utilities .

How in the world will jobless people survive if this goes on another 2-3 months? Something is going to have to give and soon.

[fung_derf]

Well I'm not in Canada

[leftovers]

In Canada yep haven't heard any in USA?

[fung_derf]

I was just reading about forgiveness of rent payments somewhere.

[leftovers]

By the middle of April going to be lights out for real estate.

Rent and mortgage payments are now due the 1st through the 10th after which late charges will be applied!

April 15th landlords and renters alike will be in the hole...

Renters lost their jobs Landlords loose the rent!

By the time Americans relief checks arrive people will be in food lines and becoming homeless.

[fung_derf]

I dumped my remaining shares this morning. Should have known not to jump back in again.

[bar1080]

Many highly leveraged mREITs crumbling. Of course, I've been warning about this dangerous group for years.

"Today's dividend of $0.05 is down from $0.50 previously." Jeesh!

[leftovers]

CEO Mike Nierenberg: "Market dislocations have put significant downward pressure on asset values ... We have made a number of decisions to de-risk, increase liquidity and protect our book value."

Today's dividend of $0.05 is down from $0.50 previously. That's an annualized payout of 3.3% based on last night's close of $5.97.

Estimated book value is seen as down about 25%-30% from the $16.21 at Dec. 31. That would put BVPS at about $11.75, or roughly double last night's close.

[StockBull]

New loading zone upon us?

[Solar_Express]

Insider Buys in the 5's PE under 3. This sector will recover (stock wise) once Covid-19 is under control and a moderately good sector of the REITS all on sale. Overweight if you have year + horizon. Oversold.

[mordicai]

https://seekingalpha.com/article/4334697-trouble-in-mortgage-reit-sector-what-everyone-is-talking

[biglued1]

Nicely moving back down so I can buy even more shares!

[value1008]

Nicely moving back up now after the double-bottom test this a.m. --which was painful to watch but i suppose "necessary" for those algo-driven bots as they drive stocks up and down and up for their own TA (chart oriented) reasons.

[puffadder]

$5.23 - looking for $7 plus in days

[fung_derf]

LOL, didn't think to just turn the clocks back!

[leftovers]

ROTF can't stop laughing!

My spousal_unit is still ticked I bought Spam for Y2K.

[bar1080]

"My spousal_unit is still ticked I bought Spam for Y2K." I bought a ton of peanut button on 12/31/1999, and then turned back the clock on all my computers a couple of years.

[fung_derf]

I don't think you can overreact right now. As I tell everyone, I prefer to "pre"-react to a situation, then adjust after. My spousal_unit is still ticked I bought Spam for Y2K.

[bar1080]

Hadn't thought about trucking firms. I owned stock in one years ago and made money with it. And now gas is dirt cheap. Luckily I've held on to my similar UPS. It's been fairly strong this past week, after going no where for several years.

[leftovers]

Ok you just made me cough up my coffee! I can settle on that thought!

Here's another one now that they shut down the Ma and Pop small businesses what is going to happen when they shut down the internet.

I am starting to see the potential for a problem. Please correct me if I am overreacting?

[fung_derf]

Well yes I was trading heavily back in 1918. It wasn't this bad though as people still thought the internet was a passing fad and instead yelled "basher" into your living room window.

[leftovers]

WOW no problem always a first time! I don't think any investor today has witness this you have to go back 90 years ! I don't know about you but I am not 90 yet!

Sooooo Yes this is a first!

GLTA I hate to see people lose money but safe to say right now we're all in the same boat!

[fung_derf]

Trucking companies look decent as in WERN. TDOC looks good still. CLX a champ

[fung_derf]

Well that's why I was confused. No one has ever done that before.

[leftovers]

LOLOL how's your BA doing? I am sure you are also falling in this carnage!

Tell us please how your diversified holding are holding UP?

By the time this is all done you will be lucky to collect .10 cents on the dollar!

Even our mentor Warren is dumb founded right about now! I am really glad I went to cash a while ago!

[bar1080]

Every sector I've warned about being dangerous -- everything ultra high yield -- is collapsing. Some mREITs are off 50% TODAY. plus the whole Energy MLP sector is about cleaned out. Some BDCs are way off, Debt is the killer. As for NRZ... I still don't know what it does!

What's holding up today? Very little, although my Walgreens is up 5% today.

[leftovers]

LOL I am not I am agreeing with you!

[fung_derf]

why are you quoting me?

[biglued1]

Oh man...you’re making me excited! Such an unexpected opportunity in the middle of a bull market. Wasn’t expecting to be able to get such quality stocks at these prices.

[leftovers]

Due to the extent of the carnage I anticipate 80% of dividend paying companies to stop paying entirely?

Very Ugly Trump is speaking again and the dow is falling more. I could see the market losing another 50% from here.

[fung_derf]

why?

[Porterhouse10]

Should see sub penny soon, then Bankruptcy

[fung_derf]

I think real estate companies will be "coerced" to freeze collecting rent and thus, dividend payouts.
It may or may not be a bargain price, but I have my serious doubts about many company's abilities to continue dividends.

[Legacy-Exchange]

Given recent market instability, the current price on brigs stock is extremely attractive at only $8 a share given dividend payouts. What do you all think?

[hurontrader]

Bought at 16.90. Could go lower. Holding back for Mr Market

[ThSeeker]

The New Face Of New Residential - Q4 Update
https://seekingalpha.com/article/4323360-new-face-of-new-residential-q4-update?utm_medium=email&utm_source=seeking_alpha&mail_subject=nrz-the-new-face-of-new-residential-q4-update&utm_campaign=rta-stock-article&utm_content=link-2

[Enterprising Investor]

Call rights should be considered “icing on the cake”.

Call rights UPB estimated as of December 31, 2019. The UPB of the loans relating to our call rights may be materially lower than the estimates in this press release, and there can be no assurance that we will be able to execute on this pipeline of callable deals in the near term, on the timeline presented above, or at all, or that callable deals will be economically favorable. The economic returns from this strategy could be adversely affected by a rise in interest rates and are contingent on the level of delinquencies and outstanding advances in each transaction, fair market value of the related collateral and other economic factors and market conditions. We may become subject to claims and legal proceedings, including purported class-actions, in the ordinary course of our business, challenging our right to exercise these call rights and, as a result, we may not be able to exercise such rights on favorable terms at all. Call rights are usually exercisable when current loan balances in a related portfolio are equal to, or lower than, 10% of their original balance.

[fung_derf]

Alrighty then. Those are the kind of direct answers I like.

[Enterprising Investor]

New Residential controls call rights on over $100 billion in UPB of mortgage collateral, representing about 36% of the Non- Agency market.

During the C-call, an analyst asked about the profit potential.

Answer: $100 billion, 2 points, divided by 400 million shares results in $5 per share over time.

[Enterprising Investor]

Core earnings were $2.17 per share. The $2 annual dividend represents 92 percent of core earnings.

Core earnings included some non-recurring expenses for integration costs related to Ditech.

I prefer reinvesting dividends at 12 percent vs 10.

NRZ will hit $20 per share by 2021. I can envision the dividend being raised to between $2.10 to $2.20 next year.

[Enterprising Investor]

New Residential Investment Corp. Announces Fourth Quarter and Full Year 2019 Results (2/06/20)

https://www.businesswire.com/news/home/20200206005334/en/New-Residential-Investment-Corp.-Announces-Fourth-Quarter

[fung_derf]

Nice! Does it get to $20? When will the raise the dividend?

[Enterprising Investor]

Investor Presentation (2/06/20)

https://d1io3yog0oux5.cloudfront.net/_45a11a5e9b47988fc552e48c82f36f39/newresi/db/640/5970/pdf/Q4%2719+and+FY%2719+Investor+Presentation+vFinal.pdf

[hurontrader]

Nice Quarter - shares break 17

https://finance.yahoo.com/news/residential-investment-nrz-q4-earnings-125512236.html

[leftovers]

New Residential Investment (NYSE:NRZ) declares $0.50/share quarterly dividend, in line with previous.

Forward yield 12.71%

Payable Jan. 31; for shareholders of record Dec. 31; ex-div Dec. 30.