Management promised us that they would have normal earnings in the third quarter... all of the free cash would be invested. They noted that they had a large pipeline of possible investments. They have announced no progress towards this goal. They have 30 days left. Why no announcements?
This refusal to keep the market informed is the reason your stock is slowly selling off. It is impossible to evaluate whether management is doing what they promised they would do. Risk increases the longer they are silent.
Here is an announcement...
NEW YORK--(BUSINESS WIRE)-- New Residential Investment Corp. (NYSE: NRZ, “New Residential”) announced that on July 1, 2013 it completed an additional closing of excess mortgage servicing rights (“Excess MSRs”) that it agreed to acquire as part of the previously announced transaction between Nationstar Mortgage LLC (“Nationstar”) and Bank of America (the “Transaction”). This closing relates to loans held in private label securitizations (“PLS”) with an unpaid principal balance (“UPB”) of $43 billion, which represents approximately 45% of the total PLS UPB associated with the Transaction.
New Residential invested approximately $53 million to acquire the right to receive one-third of the monthly cash flow generated by the mortgage servicing rights (“MSRs”), net of a basic fee paid to Nationstar. Nationstar is the servicer of the loans and has retained a one-third interest in the Excess MSRs; a Fortress Investment Group managed fund has acquired the remaining one-third interest. New Residential will not own the servicing rights and therefore will not have any servicing duties, advance obligations or liabilities associated with the portfolio.
Under the terms of this investment, to the extent that any loans in the portfolio are refinanced by Nationstar, the resulting MSRs will be included in the portfolio, subject to certain limitations. This is expected to significantly reduce the impact of prepayments on New Residential’s investment.
New Residential expects to complete the remainder of the Transaction in the third quarter, subject to regulatory approvals and customary closing requirements.
Your attitude astounds me! It's the same old nonsense from you day after day. Wah, they don't tell me anything! Wah, I am losing faith in the companies! THEN LEAVE! Sell your shares and don't let the door hit your #$%$ on the way out! Seriously, the constant posts of crying get annoying after the second or third one.
I have sent the company your email address so they can personally deliver to you any pertinent information on their investments and operations, as they occur. The rest of us will have to wait as we are not as important. I'm beginning to believe you're new to investing.
You don't think you should be kept informed? Your attitude astounds me.
No, I am not new to investing. Most companies I am involved with, however, communicate more than once a quarter. Communication is an intregal part of the job of upper-level management, especially when your business plan depends on your ability to execute a secondary offering.
I have been a supporter of NCT and NRZ for a long time, but I am losing faith in their abilities. Management shows by its continual silence an arrogance that is mind-numbing. They are not the owners of the company... the company is owned by the shareholders, and those shareholders are entitled to enough information to evaluate the job management is doing.
I owned shares of Worldcom prior to their demise. I held Harnishpheger prior to their bankruptcy. Both assurred the market all was well when it wasn't. If NRZ is unable to invest its free capital the company is working under a failed business model. We need evidence of their success. It is a new company for God's sake. What makes you think all is well? Management's last attempt at executing a significant deal was a bust!
I warn you, your attitude is the road to personal ruin. You can trust noone in business. All trust needs to be earned.
I have calls in to investor relations. I will bug them until they respond, if that is possible. My feeling is if management doesn't change their attitude, I will end our "partnership" , i.e.sell my shares. It is not that I don't think their ideas could work. It is just that my "trust" can't be verified.
He's just disappointed the pps hasn't rocketed as he expected. JA was talking about nct/nrz being worth a couple of mil one day. He's just frustrated. Being patient can be difficult.
Sentiment: Strong Buy