Replies to post #53 on Newtek Business Services Inc (NEWT)

[leftovers]

Chit happens in the stock market I started following this issue when it was trading between 16-20 dollars those folks are still in the money!

I seem to remember BA tumbling over 200 dollars a share and cut it's dividend entirely just a little over one year ago!

What goes up must come down....

cheers

[bar1080]

What just happened?

NEWT is a BDC (Business Development Corp) and therefore required to pay out 90% of Taxable Income. NEWT now intends to become a Bank Holding Company which will almost certainly slash the payout while adding more regulation and other requirements.

More on that change:
https://seekingalpha.com/news/3723415-newtek-agrees-to-buy-national-bank-of-new-york-city-in-plan-to-be-bank-holding-co

[leftovers]

NEWT has raised it's dividend for 2 quarters now. Much stronger than I anticipated.

The uncertainty of the dividend and the business plan will put a lid on NEWT for months.