Ultime notizie per Intercont (Cayman) (NASDAQ:NCT) Azioni

Newcastle Investment Corp

Newcastle Investment Corporation

NYSE

Intercont (Cayman) Ltd operates through its subsidiaries. It is principally engaged in the time charter service and vessel management services business.

Intercont (Cayman) Limited - Ordinary shares

Intercont (Cayman) Ltd

PolySwarm - United States Dollar

Nabtesco Corp

NASCENT WINE CO INC by Nascent Wine Company, Inc.

Nascent Wine Co Inc

The9 Limited - American Depository Shares

The9 Ltd

<h3>Gainers</h3>
<ul>
<li>Zeo Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZEO#NASDAQ">ZEO</a>) shares rose 55.9% to $2.12 during Wednesday's regular session. The market value of their outstanding shares is at $29.7 million. </li>
<li>Odyssey Marine Explr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OMEX#NASDAQ">OMEX</a>) stock moved upwards by 39.82% to $0.59. The company's market cap stands at $17.1 million. </li>
<li>Elong Power Holding (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ELPW#NASDAQ">ELPW</a>) shares rose 37.21% to $3.0. The market value of their outstanding shares is at $150.4 million. </li>
<li>DLH Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DLHC#NASDAQ">DLHC</a>) stock rose 28.46% to $3.52. The market value of their outstanding shares is at $50.6 million. </li>
<li>Hertz Global Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTZ#NASDAQ">HTZ</a>) stock rose 16.43% to $4.25. The company's market cap stands at $1.3 billion. </li>
<li>Urban-gro (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UGRO#NASDAQ">UGRO</a>) shares moved upwards by 15.76% to $0.66. The company's market cap stands at $8.3 million. </li>
</ul>
<h3>Losers</h3>
<ul>
<li>Click Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CLIK#NASDAQ">CLIK</a>) shares decreased by 73.9% to $0.69 during Wednesday's regular session. The company's market cap stands at $12.4 million. </li>
<li>SUNation Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SUNE#NASDAQ">SUNE</a>) stock decreased by 50.25% to $0.02. </li>
<li>Intercont (Cayman) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NCT#NASDAQ">NCT</a>) stock declined by 18.48% to $6.53. The company's market cap stands at $176.6 million. </li>
<li>Hong Kong Pharma Digital (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HKPD#NASDAQ">HKPD</a>) stock decreased by 18.34% to $0.98. The market value of their outstanding shares is at $10.7 million. </li>
<li>China Yuchai Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CYD#NYSE">CYD</a>) shares fell 15.35% to $14.18. The market value of their outstanding shares is at $532.0 million. </li>
<li>Solidion Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STI#NASDAQ">STI</a>) stock declined by 14.28% to $0.1. The market value of their outstanding shares is at $13.2 million. 
See Also: <a href="http://www.benzinga.com/money/best-industrials-stocks/" title="www.benzinga.com/money/best-industrials-stocks/">www.benzinga.com/money/best-industrials-stocks/</a></li>
</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Movers

CLIK

DLHC

ELPW

HKPD

OMEX

SUNE

UGRO

12 Industrials Stocks Moving In Wednesday's Intraday Session

<h3>Gainers</h3>
<ul>
<li>Pioneer Power Solutions (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PPSI#NASDAQ">PPSI</a>) stock moved upwards by 14.0% to $3.1 during Tuesday's after-market session. The company's market cap stands at $34.1 million. The company's, Q4 earnings came out today. </li>
<li>Li Bang International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LBGJ#NASDAQ">LBGJ</a>) shares rose 11.11% to $1.4. The market value of their outstanding shares is at $26.2 million. </li>
<li>Erayak Power Solution Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RAYA#NASDAQ">RAYA</a>) stock increased by 7.87% to $1.78. The market value of their outstanding shares is at $49.8 million. </li>
<li>Samfine Creation Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFHG#NASDAQ">SFHG</a>) shares moved upwards by 7.06% to $0.67. The company's market cap stands at $14.9 million. </li>
<li>United Airlines Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>) shares rose 6.75% to $71.52. The market value of their outstanding shares is at $23.4 billion. As per the news, the Q1 earnings report came out today. </li>
<li>New Horizon Aircraft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOVR#NASDAQ">HOVR</a>) shares moved upwards by 5.7% to $0.45. The company's market cap stands at $14.0 million. As per the news, the Q3 earnings report came out yesterday. </li>
</ul>
<h3>Losers</h3>
<ul>
<li>LanzaTech Global (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LNZA#NASDAQ">LNZA</a>) shares declined by 9.1% to $0.24 during Tuesday's after-market session. The market value of their outstanding shares is at $47.2 million. </li>
<li>Decent Holding (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DXST#NASDAQ">DXST</a>) stock fell 7.69% to $1.08. The market value of their outstanding shares is at $17.5 million. </li>
<li>JB Hunt Transport Servs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBHT#NASDAQ">JBHT</a>) shares declined by 6.55% to $126.27. The company's market cap stands at $12.6 billion. As per the press release, Q1 earnings came out today. </li>
<li>Intercont (Cayman) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NCT#NASDAQ">NCT</a>) stock decreased by 6.25% to $7.51. The market value of their outstanding shares is at $203.1 million. </li>
<li>High-Trend International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTCO#NASDAQ">HTCO</a>) shares declined by 4.98% to $1.05. The market value of their outstanding shares is at $126.9 million. </li>
<li>New Century Logistics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NCEW#NASDAQ">NCEW</a>) stock declined by 4.33% to $1.55. The market value of their outstanding shares is at $33.3 million. 
See Also: <a href="http://www.benzinga.com/money/best-industrials-stocks/" title="www.benzinga.com/money/best-industrials-stocks/">www.benzinga.com/money/best-industrials-stocks/</a></li>
</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

DXST

HOVR

HTCO

JBHT

LBGJ

LNZA

NCEW

PPSI

RAYA

SFHG

12 Industrials Stocks Moving In Tuesday's After-Market Session

<h3>Gainers</h3>
<ul>
<li>Urban-gro (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UGRO#NASDAQ">UGRO</a>) stock rose 28.2% to $0.55 during Wednesday's pre-market session. The company's market cap stands at $6.9 million. </li>
<li>TTEC Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TTEC#NASDAQ">TTEC</a>) shares increased by 26.91% to $4.15. The market value of their outstanding shares is at $198.1 million. </li>
<li>Intercont (Cayman) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NCT#NASDAQ">NCT</a>) stock increased by 9.81% to $5.93. The market value of their outstanding shares is at $159.3 million. </li>
<li>Cycurion (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CYCU#NASDAQ">CYCU</a>) stock moved upwards by 8.28% to $0.54. The company's market cap stands at $6.4 million. </li>
<li>1847 Holdings (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/EFSH#AMEX">EFSH</a>) shares increased by 7.51% to $0.12. The company's market cap stands at $3.3 million. </li>
<li>Babcock &amp; Wilcox (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BW#NYSE">BW</a>) stock moved upwards by 5.96% to $0.48. The company's market cap stands at $45.7 million. As per the news, the Q4 earnings report came out 2 days ago. </li>
</ul>
<h3>Losers</h3>
<ul>
<li>Jayud Global Logistics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JYD#NASDAQ">JYD</a>) shares declined by 79.3% to $1.65 during Wednesday's pre-market session. The market value of their outstanding shares is at $157.6 million. </li>
<li>Eve Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EVEX#NYSE">EVEX</a>) stock declined by 21.86% to $2.61. The market value of their outstanding shares is at $776.8 million. </li>
<li>Mobile Infrastructure (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/BEEP#AMEX">BEEP</a>) stock declined by 19.73% to $3.46. The market value of their outstanding shares is at $147.3 million. </li>
<li>Lichen International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LICN#NASDAQ">LICN</a>) shares fell 14.92% to $3.65. The market value of their outstanding shares is at $2.1 million. </li>
<li>ESGL Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESGL#NASDAQ">ESGL</a>) shares declined by 12.41% to $1.75. The company's market cap stands at $71.0 million. </li>
<li>LanzaTech Global (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LNZA#NASDAQ">LNZA</a>) shares declined by 10.08% to $0.28. The company's market cap stands at $54.3 million. As per the news, the Q4 earnings report came out 2 days ago. 
See Also: <a href="http://www.benzinga.com/money/best-industrials-stocks/" title="www.benzinga.com/money/best-industrials-stocks/">www.benzinga.com/money/best-industrials-stocks/</a></li>
</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Mobile Infrastructure Corporation Common Stock

BEEP

CYCU

EFSH

ESGL

EVEX

LICN

TTEC

12 Industrials Stocks Moving In Wednesday's Pre-Market Session

&nbsp;
<ul>
<li>
		Analysts at Mizuho initiated coverage on Biogen Inc (NASDAQ: <a class="ticker" href="/stock/biib#NASDAQ">BIIB</a>) with a Neutral rating. The price target for Biogen is set to $290. Biogen shares closed at $295.62 on Monday.</li>
<li>
		Jefferies initiated coverage on BioScrip Inc (NASDAQ: <a class="ticker" href="/stock/bios#NASDAQ">BIOS</a>) with a Buy rating. BioScrip shares closed at $2.61 on Monday.</li>
<li>
		Analysts at Piper Jaffray initiated coverage of Mammoth Energy Services Inc (NASDAQ: <a class="ticker" href="/stock/tusk#NASDAQ">TUSK</a>) with an Overweight rating. Mammoth Energy shares closed at $13.61 on Monday.</li>
<li>
		Analysts at JP Morgan initiated coverage of Adient PLC (NYSE: <a class="ticker" href="/stock/adnt#NYSE">ADNT</a>) with a Neutral rating. The price target for Adient is set to $55. Adient shares closed at $44.60 on Monday.</li>
<li>
		Analysts at Aegis Capital initiated coverage on Nektar Therapeutics (NASDAQ: <a class="ticker" href="/stock/nktr#NASDAQ">NKTR</a>) with a Buy rating. The price target for Nektar Therapeutics is set to $21. Nektar Therapeutics shares closed at $12.80 on Monday.</li>
<li>
		Mizuho initiated coverage on Amgen, Inc. (NASDAQ: <a class="ticker" href="/stock/amgn#NASDAQ">AMGN</a>) with a Buy rating. The price target for Amgen is set to $164. Amgen shares closed at $139.21 on Monday.</li>
<li>
		Analysts at Deutsche Bank initiated coverage on Microsemi Corporation (NASDAQ: <a class="ticker" href="/stock/mscc#NASDAQ">MSCC</a>) with a Buy rating. The price target for Microsemi is set to $60. Microsemi shares closed at $47.84 on Monday.</li>
<li>
		Analysts at Imperial Capital initiated coverage on Newcastle Investment Corp. (NYSE: <a class="ticker" href="/stock/nct#NYSE">NCT</a>) with an In-Line rating. The price target for Newcastle Investment is set to $4.50. Newcastle Investment shares closed at $4.54 on Monday.</li>
<li>
		Analysts at BMO Capital initiated coverage on Sociedad Quimica y Minera de Chile (ADR) (NYSE: <a class="ticker" href="/stock/sqm#NYSE">SQM</a>) with a Market Perform rating. The price target for Sociedad Quimica y Minera de Chile is set to $30. Sociedad Quimica y Minera de Chile shares closed at $29.07 on Monday.</li>
<li>
		Mizuho initiated coverage on Celgene Corporation (NASDAQ: <a class="ticker" href="/stock/celg#NASDAQ">CELG</a>) with a Buy rating. The price target for Celgene is set to $130. Celgene shares closed at $107.49 on Monday.</li>
</ul>

Initiation

Analyst Ratings

ADNT

AMGN

BIIB

BIOS

CELG

MSCC

NKTR

TUSK

Benzinga's Top Initiations

Imperial Capital initiates coverage on Newcastle Investment Corporation (NYSE: <a class="ticker" href="/stock/nct#NYSE">NCT</a>) with a In-Line rating and a $4.50 price target.

News

Reiteration

Imperial Capital Initiates Coverage On Newcastle Investment Corporation at In-Line, Announces $4.50

Earnings

Newcastle Reports Q3 Adj. FFO $0.42, Core EPS $0.35

Hedge Funds

General

Fortress Raises Stake in New Castle Investment From 178K Shares to ~5.5M Shares

Newcastle Reports Receipt of ~$110M Legacy Real Estate Debt Repayment

Management

Newcastle Names Sarah Watterson CEO, Lawrence Goodfield CFO, Sara Yakin COO

Newcastle Q2 FFO $0.16, Revenue $92M vs $75.7M est

Newcastle Q1 EPS $0.05 vs $0.13 est, Revenue $62.16M vs $75.73M est

Shares of Sierra Wireless, Inc. (USA) (NASDAQ: <a class="ticker" href="/stock/swir#NASDAQ">SWIR</a>) were trading down about 4.1 percent in Friday&rsquo;s after-hours session, in what looked like a correction of the 4.54 percent surge the stock experienced over the day.

	Similar was the case of Methanex Corporation (USA) (NASDAQ: <a class="ticker" href="/stock/meoh#NASDAQ">MEOH</a>), down more than 4 percent after the bell rang, having gained 4.26 percent over the regular session. The surge seen during the day was driven by Raymond James&rsquo; upgrade of the stock from Market Perform to Outperform. The firm also raised its price target from $32.00 to $40.00.

	Icahn Enterprises LP (NASDAQ: <a class="ticker" href="/stock/iep#NASDAQ">IEP</a>) rose 1.49 percent during the day, and continued to surge an extra 2.5 percent after hours, probably helped by the the increase in oil prices and the surge in the markets.

	Cenovus Energy Inc (USA) (NYSE: <a class="ticker" href="/stock/cve#NYSE">CVE</a>) gave up most of the gains registered over the day. After a 5.29 percent surge, the stock lost 5.26 percent after hours. The rise seen during the day was driven by a surge in oil prices and the addition of the company&rsquo;s stock to Goldman Sachs&rsquo; Americas Conviction List.

	Other stocks moving in Friday&rsquo;s after-hours session included:
<ul>
<li>
		Oclaro, Inc. (NASDAQ: <a class="ticker" href="/stock/oclr#NASDAQ">OCLR</a>), up 2.1 percent</li>
<li>
		Zynga Inc (NASDAQ: <a class="ticker" href="/stock/znga#NASDAQ">ZNGA</a>), up 1.35 percent</li>
<li>
		Newcastle Investment Corp. (NYSE: <a class="ticker" href="/stock/nct#NYSE">NCT</a>), down 4.7 percent</li>
<li>
		Manitowoc Foodservice Inc (NYSE: <a class="ticker" href="/stock/mfs#NYSE">MFS</a>), up 4.3 percent</li>
</ul>

	Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

After-Hours Center

MEOH

OCLR

SWIR

ZNGA

8 Stocks Moving In Today's After-Hours Session

Newcastle Reports Q4 Adj. FFO $0.08, Core EPS $0.13, Operating Sales $69.363M

Options

Markets

Option Alert: NCT May16 4.0 Calls: 19061 @  ASK  $0.40: 19k traded vs 7 OI: $4.10 Ref

Newcastle Investment Reports Q3 AFFO $0.25, no estimates

The following letter was sent to the CEO of Newcastle Investment today: 
 Charles Frischer 
 4404 52(nd) Avenue NE 
 Seattle, WA 98105 
 August 10, 2015 
 Mr. Wesley Edens 
 Co-Chairman 
 Fortress Investment Group 
 1345 Avenue of the Americas 
 46(th) Floor 
 New York, NY 10105 
 Dear Mr. Edens: 
 I recently filed a 13-D form on Newcastle Investment, disclosing my 
ownership of 3,442,000 shares or 5.2% of the outstanding shares. I have been 
a long-term investor in the company and recently purchased additional shares 
because they are trading at a significant discount to the net asset value of 
the company. 
 Last week Newcastle reported great earnings. Newcastle has two major assets: 
a real estate loan portfolio, which has just over 12 months of duration, and 
a portfolio of golf assets. The corporate actions taken by management in 
both buying back the company's golf debt at a 10% discount and collapsing 
two of its main CDO portfolios were terrific. Buying the golf debt back at a 
discount created 25 cents per share of additional value, and collapsing the 
CDO portfolio further simplified the investment and removed considerable 
risk. 
 In the aftermath of a great earnings report, NCT shares were down 6.5% for 
the week. At the current stock price of $4.60, the market clearly is not 
giving the company credit for the value of the golf assets. Management has a 
responsibility to the Newcastle shareholders to immediately address this 
situation. 
 Therefore, I request that management immediately initiate a $100 million 
share buyback, with a ceiling price of $5.00 per share. If the company is 
not willing to implement this buyback, I request that it immediately begin a 
sale/liquidation of Newcastle Investment with the expectation that proceeds 
will exceed $6.65 per share, a 45% premium to the current stock price. 
($6.65 is the midpoint of the sum of the parts valuation from page 7 of the 
second quarter 2015 investor supplement presentation.) There would also be a 
large number of both private equity firms and other investment companies who 
would love to take control of Newcastle at a $6.65 price. 
 The market price of Newcastle is also depressed because it is being grouped 
in with other mortgage REITs. Investors are assuming the company will be 
subject to significant asset deterioration due to future interest-rate hikes 
by the Federal Reserve. Not only is it uncertain when the Fed will raise 
rates and by how much they will increase, but a real estate loan portfolio 
with just over a 1-year duration should be sheltered from any unusual 
deterioration in value. Newcastle is a mortgage REIT in name only. The 
company owns a very short-term bond portfolio and a collection of golf 
assets with dramatically improving fundamentals. The current market 
disruptions are an opportunity that management must take advantage of 
immediately. 
 Newcastle is basically a special-purpose acquisition entity selling at a 35% 
discount to net asset value. I am confident that Fortress, acting as manager 
of Newcastle, will be able to execute on an accretive acquisition when it is 
identified. Another reason for the discount to net asset value is the fear 
that Fortress will do an ill-advised acquisition. I am confidant that 
Fortress will identify an accretive acquisition and that the market will 
give the stock a more appropriate and higher valuation once a deal is 
announced and explained to shareholders and the analyst community. 
 Fortress Investment Group, as the manager of Newcastle Investment, might 
have different motivations in regards to the capital it manages for 
Newcastle. The management of Fortress might be reticent about incurring a 
30% reduction in management fees if the share buyback proposed was fully 
implemented. However, a short-term reduction in management fees could lay 
the groundwork for much larger management fees from Newcastle in the future. 
The market capitalization for Newcastle Investment is approximately $300 
million. The medium-term goal for Fortress is to manage a capital base at 
Newcastle in the range of $1-2 billion. The buyback would dramatically 
increase the net asset value per share and lay the groundwork for a much 
larger company. 
 Buyback accretion
 Post-buyback @ 
 Current $5 Change 
Net Asset Value of 
 Newcastle $442 million $342 million -$100 million 
Outstanding shares 66 million 46 million -20 million 
Per-share NAV of 
 Newcastle $6.65 $7.43 +11.7%
 Based on my simple example, the per-share net asset value increases by more 
than 11.7% via a $100 million buyback. This is only the first step in the 
process. The corporate strategy for Fortress is to manage a much larger 
permanent capital vehicle at Newcastle. The market would love this buyback 
program and would afford the company a higher per-share valuation. There 
would still be plenty of capital at Newcastle to effectuate the next 
acquisition, whenever that may occur. The ability for Newcastle to do an 
even larger secondary offering at that time will be much improved because 
Fortress management will have proven itself to be willing to occasionally 
take a short-term hit to profitability to drive long-term growth. 
 The math is compelling and is in the long-term interest of Fortress. By 
virtue of this buyback, you will likely be able to sell shares to the public 
at a level at least 10% higher than absent this program. The buyback program 
would also provide great security to the already large and likely growing 
dividend. Assuming a $5.00 buyback price and the current 48-cent dividend, 
the company would be earning a risk-free 9.6% return on this $100 million. 
If the dividend is raised to 60 cents over the next 6 months, as many 
analysts believe it will be due to the strong results at the golf course 
division, the risk-free return earned by buying back the shares at $5.00 is 
12%. These are very large risk-free returns that can be earned by buying 
back company shares. 
 The buyback is in the interest of both Newcastle and Fortress shareholders. 
A more basic argument could easily be made that the management of Newcastle 
should do what is best for the company, without any consideration for 
Fortress. The management of Newcastle has a fiduciary responsibility to its 
shareholders, even if those actions are not in the interest of Fortress. The 
course of action outlined here is in the interest of both parties and 
creates a mutually beneficial outcome. 
 If Fortress Investment Group, as the manager of Newcastle Investment, is not 
willing to implement this large buyback, I request an immediate 
sale/liquidation of the company. I believe this sale/liquidation will result 
in more than $6.65 per share. There are numerous buyers for the golf assets, 
including Club Corp, and the real estate loan portfolio can easily be 
liquidated as it matures over the next 12 to 18 months. There would also be 
numerous financial buyers interested in obtaining control of their own 
permanent capital vehicle at a minimum $6.65 per share. The shareholders of 
Newcastle must be treated fairly. 
 Please immediately address the issues raised in this letter with the Board 
of Directors. In addition, please send me a current list of your 
shareholders. 
 Wes, your team at Fortress has done a very good job managing Newcastle over 
the last 3-5 years. In the last 6 months, shareholders have not been excited 
about the stock price of both New Senior and Newcastle. A large buyback 
program at Newcastle would enable you to regain tremendous favor with your 
investors. This is a smart move for both Newcastle and Fortress 
shareholders. Please take immediate action on this capital allocation 
strategy. 
 Sincerely, 
 Charles Frischer 
 View source version on businesswire.com: 
<a href="http://www.businesswire.com/news/home/20150810005579/en/" title="http://www.businesswire.com/news/home/20150810005579/en/">http://www.businesswire.com/news/home/20150810005579/en/</a>
 CONTACT: LF Partners 
 Charles Frischer, 917-528-1465

Buybacks

Press Releases

LF Partners' Charles Frischer Requests That Newcastle Investment Initiate a $100M Share Repurchase Plan or Sell/Liquidate the Company

Newcastle Investment Reports AFFO $0.40, no estimates

Insider Trades

Fortress Operating Entity I LP Reports 6.4% Stake In Newcastle Investment Corp as of May 7

Newcastle Investment Corp Reports Q1 EPS $0.12 vs Est $0.25

On Monday, Bank of America Merrill Lynch (BAML) published a report initiating coverage on New Residential Investment Corp (NYSE: <a class="ticker" href="/stock/nrz#NYSE">NRZ</a>), a REIT focused on mortgage servicing rights (MSRs).
<h3>A Brief History On New Residential</h3>

The company was formed as a subsidiary of Newcastle Investment Corp. (NYSE: <a class="ticker" href="/stock/nct#NYSE">NCT</a>) in September 2011 and was spun off as an independent company in May 2013. New Residential is externally managed by an affiliate of Fortress Investment Group LLC (NYSE: <a class="ticker" href="/stock/fig#NYSE">FIG</a>).

Earlier in April, New Residential acquired the MSR assets from Home Loan Servicing Solutions Ltd (NYSE: <a class="ticker" href="/stock/hlss#NYSE">HLSS</a>), part of the beleaguered Ocwen Financial Corp (NYSE: <a class="ticker" href="/stock/ocn#NYSE">OCN</a>) family of companies.

Notably, while Ocwen was retained for two years as the named mortgage servicer on these assets, New Residential now has the call rights on the underlying mortgages.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/15/04/5426727/bank-of-america-watch-this-twist-in-amazons-earnings">Bank Of America: Watch This Twist In Amazon's Earnings</a></bzrelatedlink>
<h3>Tale Of The Tape &ndash; Past Year</h3>
<img src="/files/u80916/nrz_-_ychart_bofaml_apr_20.jpg" width="500" height="379" alt="nrz_-_ychart_bofaml_apr_20.jpg" />
BAML believes that the new Home Loan Servicing/Ocwen Financial relationship was a "game-changer [...] as it allows NRZ to expand its servicer relationship beyond affiliate Nationstar," also a non-bank servicer of mortgages, primarily non-performing loans (NPLs) similar to Ocwen.
<h3>BAML, New Residential Investment: Initiated Buy, $18.50 Price Objective</h3>
BAML views New Residential as having approximately a 20 percent upside potential from both price appreciation of 10.6 percent, as well as a 2016E distribution of $1.66 per share, currently around 9 percent.
Notably, BAML views the Home Loan Servicing acquisition as being "immediately accretive" to earnings, and BAML forecasts an 18 percent quarterly dividend increase from $0.37 to $0.45 per share.
BAML thinks "the market will likely value NRZ at a premium to residential mortgage REITs, which yield around 11 percent currently, and at a discount to commercial mortgage REITs, currently yielding 8 percent."
<h3>BAML &ndash; Mortgage Servicing Overview</h3>
Non-bank servicers have grown market share, as commercial banks look to avoid the regulatory complications that come from mortgage servicing, especially servicing NPLs.
<img src="/files/u80916/nrz_-_bofaml_exhibit_9.jpg" width="635" height="296" alt="nrz_-_bofaml_exhibit_9.jpg" />
The recent well-documented regulatory problems of the Ocwen Financial/Altisource family of companies has resulted in this previously unanticipated growth opportunity for New Residential.
<h3>Similar, Yet Slightly Different Business Models</h3>
BAML noted, "Prior to the HLSS transaction, NRZ owned excess mortgage servicing rights. HLSS primarily invested in Rights to MSRs. NRZ also invests in servicer advances under which NRZ receives a portion of the base servicing fee." 
HLSS' rights to MSRs will be split between excess servicing and servicer advances by New Residential for clarification and accounting consistency. 
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/news/15/04/5422851/gaming-stocks-pop-after-mgm-hires-reit-advisor">Gaming Stocks Pop After MGM Hires REIT Advisor</a></bzrelatedlink>
<h3>BAML &ndash; NRZ Investment Rationale</h3>
<ul>
<li>Stable Dividend Income: "NRZ is structured to produce earnings across of a range of operating and economic backdrops, which should lead to stable dividend income for investors." </li>
<li>High Quality Asset Base: "NRZ assets consist primarily of excess MSRs and servicer advances that hold a senior position in the underlying mortgage cash flows and thus have limited credit risk." </li>
<li>Key Customers: "NRZ historically has had a preferential relationship with Nationstar. The acquisition of HLSS' assets extends the network to include Ocwen. Being embedded with the two largest non-bank servicers is an advantage." </li>
<li>Benign Rising Rates: "Servicing related assets are unique among financial assets in that they generally increase in value as interest rates increase. This is due to the inverse impact of interest rates on prepayment speeds, which results in extending the life of mortgages and the associated servicing fee stream."</li>
</ul>

<h3>BAML &ndash; Risks To NRZ PO</h3>
<ul>1.	The New Residential Investment business model is dependent upon the performance of third-parties such as Nationstar and Ocwen.</ul>
<ul>2.	Prepayments of underlying mortgages could reduce earnings from MSRs.</ul>
<ul>3.	Regulatory risks could affect both the business environment and investor perceptions of New Residential.</ul>
<ul>4.	Re-investment risks resulting from an inability to replace or grow MSR business lost to prepayment or mortgage payoffs.</ul>

<h3>Investor Takeaway</h3>
Investors considering investments in residential <a href="http://www.benzinga.com/topic/mreit">mREITs</a>, or mREITs that make loans primarily associated with commercial real estate, have another asset class to consider that could act as a hedge in a rising rate environment.
However, the regulatory risks associated with MSRs on non-performing loans, and a relatively complicated business structure, could become challenges for New Residential investors moving forward.
&nbsp; 
Image Credit: <a href="http://pixabay.com/en/key-lock-door-security-home-565607/">Public Domain</a>

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