BTIG Eric Hagen MREIT Analysts calls Dynex Capital $DX/$NRZ a Buy.
Wonder if BTIG knows those that turned around $DX/$NRZ own 75% of Novation OTC $NOVC common shares 87M of 114M (per recent S-8):
28% Fortress w/EJFcap Manny Friedman via CDO Service Rights they own on NOVC only Sr Debt Note Holders; Fortress via Taberna I and II and EJF Capital via Kodiak CDO I. Per doc review they have virtually no cash in the CDO Service Rights that own NOVC only Sr Debt and since 8 9 19 Press Release own 31.3M NOVC common 28% (9M common + 22.250M Ten Year Warrants at one cent strike. NOVC Board Chairman award Fortress and EJF Capital 28% of common and received on the surface nothing in return not even a reduction in Sr Debt principle. I believe these Note Holders have an understanding to participate along side Mass Mutual in NOVC PS Ser F (read 2018 14A proxy approved by shareholders that price one NOVC Common at $2.33 exactly Mass Mutual and Barings Adjusted Cost Basis in NOVC 500M common equivalents at 2.33 is $1.165B in cash. Note Holders I believe once they participate in PS Ser F will retire all Sr Debt at discount. After all when Note Holders stand to make est $1.2B in their 31M NOVC Shares and collect over 100M each year in Dividends and 1.5% Mgt Fee like Fortress does at NRZ Newresi.com it is clear.
20% Mass Mutual & Barings
32% x Dynex Capital NYSE $DX Board Members; Barry Igdaloff (Resigned per 9/3/20 DX 8K became Chairman of the Board at NOVC days later) & Thomas Akin x Chairman of the Board at DX and recently resigned IMH Impac Mortgage Holdings Board Member & close co-investors.
NOVC Chairman of the Board and CEO have both separately denied NOVC will ever get back into MREIT business even when their capital table is controlled by world class MREIT, CCR, NOL, MBS experts especially
DX investors Howard Amster, Barry Igdaloff & Thomas Akin ex- Chairman of the Board of DX and recently retired Board Member at NQM mortgage lender IMH. SDH (Wesley R. Edens COB of Fortress, ex COB of NCT, CMO, and more and EJF Capital, Manny Friedman x Founder of FBR).
The only logical move for NOVC and these investors is to duplicating their reorganization playbook from Newcastle $NCT = $DS, $NRZ, $SNR, $NEWM at Novation Companies, Inc. OTC $NOVC (MREIT aka NFI + SPAC but with $730M NOL )
NOVC holds the exact same attributes that Fortress Wes Edens used at Newcastle NCT & Fortress via CMO used with Igdaloff, Amster, Emoff and Akin at Dynex Capital. It is time Chairman of the NOVC Board Barry Igdaloff stop allowing SDH to conceal their true identifies as economic owners of all and NOVC only Sr Debt; Fortress via CDO Taberna I & II and EJFcap Manny Friedman via Kodiak CDO I + Mass Mutual sub-Barings aka Babson Capital & ex Dynex Capital DX Board Members; Igdaloff & Akin will and I believe should duplicate their reorganization playbook from Newcastle NCT at NOVC by:
1. Spinoff as separate tax exempt MREIT NOVC 100% owned Novastar Financial Inc. x NYSE NFI former symbol (operated like NCT 3 MREIT esp NRZ. NFI de REIT effective 1/1/2006) to $NOVC & use NFI Cleanup Call Rights per Service Rights Transfer Agreement sec 5.04 to most of $3B RMBS, NQM, leveraging/resecuritizing these collateral assets at NIMs 500 Bpts (produced annual dividends est $3.57/share).
2. NOVC can position 2nd co as SPAC but with $730M NOLs and high moat around www.healthcare-staffing.com HCS. No investor in the world has more SPAC experience then NOVC largest shareholder Fortress.
These very experienced investors have sat on NOVC 86M common 75% for years. I believe their game plan yet revealed was postponed because of Covid 19 impact on NQM mortgage Market. I believe they have completed their awards to themselves of 43M NOVC shares at one cent (31.3M SDH and est 12M for Board of Directors lead by Chairman of the Board and ex DX Board Member Barry Igdaloff).
AI
