$6.24

0.49 (8.52%)

7/8/2008 4:05 PM

Newcastle Investment Corp. (NCT)

CAPS Rating:

The Company is a real estate investment and finance company. The Company invests in real estate securities, loans and other real estate related assets.

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What the Community Thinks

Total Players

201 Outperforms

51 Underperforms

All-Stars

33 Outperforms

40 Underperforms

Wall Street

3 Outperforms

1 Underperforms

Players bullish on NCT are also bullish on:

Players bearish on NCT are also bearish on:

Ticker Tags

REIT - Diversified (56), Small Cap (1922)
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Newcastle Investment Corp. At A Glance

Current Price:	$6.24
Last Trade Time:	7/8/2008 4:05 PM
Open:	$5.69
Previous Close:	$5.75
Daily Range:	$5.17 - $6.34
52-Week Range:	$5.63 - $25.21
Volume:	913,174
Market Cap:	$303.48M
P/E Ratio:	8.89
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Stock Trends

NCT VS S&P 500 (SPY)

News & Discussion Boards

Other News Headlines for NCT

Newcastle Investment declares quarterly dividend
6/19/2008 2:25:00 PM - AP
Earnings roundup: Venoco, Newcastle Investment
5/12/2008 3:10:00 PM - AP
Newcastle books loss in 1Q funds from operations
5/12/2008 1:55:00 PM - AP
Newcastle Investment Cuts Dividend
3/17/2008 5:19:00 PM - AP

More Headlines...

Top Bull Pitch

Recs

5 Newcastle Investment Corp. (NCT)

Avatar UncommonSense (75.37) Submitted: 1/31/08 2:24 PM

Newcastle Investment will continue to pay a dividend in 2008, even if they cut it, it will still be far above average.

According to GAAP, NCT must report the value of their assets mark-to-market, which means they have to value their assets at what they could sell them right now for. Th...More

Replies: 2 | Reply | Permalink

Top Bear Pitch

Recs

2 Newcastle Investment Corp. (NCT)

Avatar TheGarcipian (99.64) Submitted: 3/31/08 10:23 PM

How many ways can you spell "Fire Sale"? Let me count the ways. (1) a debt-to-equity ratio of 16.5-to-1?! (2) the company nearing book value ($5.60/shr); (3) negative RoA, RoE, cash flow, Profit Margin and Quarterly Revenue Growth (yikes!); (4) and an outstanding 25% of stock is now shorted. Jimin...More

Replies: 3 | Reply | Permalink

CAPS Players

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Recs 0 (NCT) jdcarcollector (93.04) Submitted: 6/27/08 11:01 PM : Start Price: $7.22 NCT Score: 12.95 No asset value in this name. Annualize Q1 NOI + 5% for rough, 'benefit of the doubt' estimate for 2008, at 7% cap rate (very aggresive) this entity has no equity. Nah nah nah nah... nah nah nah nah.... hey hey hey... good bye. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (NCT) YouPickForMe (< 20) Submitted: 6/27/08 1:45 PM : Start Price: $6.90 NCT Score: -9.52 Guys this is my first pick. The idea behind the Outperform rating is, NCT is doing right thing to lure customers with its dividend. There business model is slight different than others. Based on the information I have CFO knows what he is doing and very good at it. I like Managers at NCT too, cause these guys works in best interest of the stakeholdes. Moreover declaring dividend is right step that boost the confiedence that near future is good. I am in at the price of 7.15 and looking to go out at 9.15.. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (NCT) earthStrapped (75.81) Submitted: 5/07/08 3:03 PM : Start Price: $10.10 NCT Score: -29.23 Read blog from 5/7 but essentially oversold. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (NCT) pytheian (78.66) Submitted: 5/07/08 11:39 AM : Start Price: $8.71 NCT Score: -20.43 Can this beaten up REIT maintain the dividend? Maybe not: "We increased cash on hand to approximately $120 million currently, up from $29 million at year-end; reduced recourse borrowings from $1.8 billion to just over $900 million, about half of which is repo against agency securities. So the actual recourse level of debt on the balance sheet is down dramatically." - Decreasing resources debt means that they're less likely to be subject to a sort of margin call. Remaining recourse debt is set against liquid agency securities, so this number is not that bad "The core operating results for the company are good, but those are likely to come down in the near term as a result of the cash build-up that we’ve had. Overall, we’ve increased liquidity by about $100 million. In simple terms, for a fully-invested equity was earning around 15%, and cash on hand earns a lofty 3% or so, our run-rate until we invest the excess cash will come down. Obviously, we’re in the process of reviewing what impact this will have on the dividend prior to our next announced dividend date of March 14. But, again, our focus, my focus is what to do in terms of the investments in the balance sheet on a go-forward basis. " - So returns should recover modestly since firm is not in a position to deploy all its cash " Our total CDO debt is about $4.5 billion today. Just to review and so you could understand what these are, these liabilities are non-recourse to the company which means that we are not required to post additional cash or sell assets as the market value of the underlying securities change. " "Our average funding spread is very attractive at LIBOR plus 40 basis points. And the average life is relatively long at 6.3 years. Our CDO financings provide a lot of opportunity and flexibility to the company as well as stability to our cash flows." - This debt is a strength to this firm because it's cheap and stable (they couldn't go out and get these same terms now), and dwarfs the dodgier recourse debt, so the overall profile is healthy. And they took their appropriate write-downs. Not the pick of the litter among (that's AFN), but the upside exceeds the downside right now. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (NCT) bluedome (< 20) Submitted: 4/28/08 6:56 PM : Start Price: $9.56 NCT Score: 26.04 5.7B in long term debt ($100 a share) that is 50x next years earnings The bull pitch must be looking at different numbers Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out.
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Wall Street

Results 1 - 4 of 4

picks per page. CHANGE Expand All Pitches Collapse All Pitches

Top Pick	Player Name	Player Rating	Start Date	Call	Time Frame	Start Price	Stock Gain	S&P Gain	Score	Pitch
	TrackCitigroup	89.60	03/05/08 03/05/08		NS	$8.28	-24.68%	-4.65%	+20.02
	TrackWWeitz	< 20	09/30/07 09/30/07		NS	$15.73	-60.34%	-16.63%	-43.71
	TrackCohenBros	< 20	12/20/06 12/20/06		NS	$25.75	-75.77%	-10.61%	-65.16
	TrackJimCramer	83.15	06/16/06 06/16/06		3W	$20.00	-68.80%	+1.90%	-70.70

Results 1 - 4 of 4

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