Rithm Capital Corp (RITM)

[Enterprising Investor]

Not necessarily.

Bulk MSR acquisitions require a large amount of cash when an opportunity arises. Each time, the company has floated a secondary offering. Then, the price goes down for a short period of time.

Plus, the recently-enacted Inflation Reduction Act of 2022 includes a new, non-deductible, 1% excise tax on “repurchases” of the stock of “covered corporations” which occur after 12/31/22.