Selloffs happening. Same *bleep*, different day. Isn't it amazing that the rest of the word is up 1-2% today but our market is going to finish RED. Why is that? We live in a country where people are too stupid to figure out anything for themselves and instead just like to listen to the talking heads on tv and then regurgitate it like they are experts on it.
Anyway, I do think we will see a slow climb back to $7, but it might take longer than after the last offering. It will probably be a bumpier road than the 17 straight days of finishing up like we saw last time also. Company specific news going forward is May 31st hopefully they announce one MSR deal is done. First week in June we get the dividend announcement. Then, hopefully with any luck, we don't get another SO announced.
Any cash package is a bonus for the holder of NCT. Profits are all part of what we do with cash as the driving force. The down side will be a product of the equity value that is pass along both in stock value and dividends.
I would love to see another 500MM SO tied to a sharp package with another high yield. These guys are on a roll....no sevens at this table...IMHO-D
Another SO would indicate that there is plenty of product out there to buy from the banks trying to meet new basel 2 capital requirements. If nct can deploy the capital fast enough, then I am all for raising all the capital it can in the short term. The banks will soon have a long line of firms wanting to purchase, and the prices may start to reflect that demand. Each SO is a short term negative, but a huge long term positive, if deployed before the prices start to rise..