hey Dave,,you don't know how glad i am to see this reply...about a month or so ago i sold half my ras position and spread it out..[because of the europe situation,not local advise ghost]...i got rso,ivr,and nct...[i had to get a safe pass card from merill lynch to purchase otc stock]i'm glad i did ,i had way too much ras so now i'm spread out better..i still have 4000 shares ras,so ,we hit $12 ps i,m slimming down some more....LOL to ya!!like your web site...nick
I disliked NCT for exactly that reason for a long time. What changed my mind is the cash flow, which is sufficient to support a higher dividend, and the aggressive portfolio debt restructuring they did last year, which improved their debt situation immensely. This article provides an extremely good summary of where NCT is right now: http://us.rd.yahoo.com/finance/external/pssa/SIG=12o483uj0/*http://seekingalpha.com/article/320752-attractive-yields-in-non-agency-mreit-newcastle?source=yahoo .
I've been trading around a core position on the stock and now have an average price that is well below the current price. My average price is rising somewhat as I've added shares, but the yield is over 12% at current prices, they haven't announced their 4Q reporting date yet, and they seem likely to go up as much as RAS will before they get to earnings.
I'm still looking for the flies in the ointment. Probably the biggest is interest rates, but so long as rates seem likely to remain low it seems unllikely that their will be a problem.
I have NCT on my watch list but never considered it to be a candidate for investment because of the high debt load. They are making good profits but I really don't like that the book value is $1.
I will hold on to the cash for a few sessions and perhaps buy some BAC if it falls a bit. I think BAC will double within 1 year.
I guarantee you I'll make 50% on this buy. And you can look up and old mail of mine where I also made a "Guarantte" when RAS was at $1.50 last year. At the time I cashed my 50% when it hit $2.25, equivalent of it going back to $6.75. And it will, it's just a matter of time.
Should it fall further, this buy was just 1/2 my money. Than you can guess what I will do right?