RITM
By the way I have been selling RITM premarket around $10.16-10.17 avg as I didn't think this was a good quarter for numerous reasons.
1) RITM earned slightly less this quarter versus last year on the EPS front, I was expecting the usual seasonal drop (Hence I was looking for .55-.60), but it seems like number 1 at least my understanding that q4 was more of a outlier on certain fronts. Maybe I heard wrong but that was my take. And lower eps y/y was not expected by me at all.
2) Book Value declined sequentially, and normally when that happens the management team can't wait to tell it is up from where quarter's end. I didn't hear that this time. Which leads me too believe it is either flat or down more this quarter so far.
3) AUM dropped in those segments, think it was like 63 million in q4 down to 59 million in q1.
4) In the name of the new business in the office space there occupancy rate actually declined slightly sequentially.
5) Not a big deal but cash and liquidity also dropped sequentially as well from 1.7 billion to 1.4 billion, obviously still a lot of liquidity but would like to watch that trend doesn't continue at that rate.
6) Company although optimistic about there execution, cited some more competitive pressure in certain areas and possibly talked about keeping an eye on the consumer with credit.
Conclusion: RITM is probably still cheap, but pretty much everywhere I looked I found this quarter disappointing, there are things to keep an eye on as well that the trend doesn't continue. Stock has had a nice run off the low in the mid 8's. And I think we are near a near-term top, and if I want to buyback which I'm unsure at this point, I think I will get my chance to do so. All is just my opinion, and I could always be wrong though.
AI
