Has anyone else who held onto both after the split seem to notice that these stocks have an inverse relationship? When one goes up the other goes down and vice versa? Neither has gone up together or down together. Is there a logic to this rhythm?
These are in reality two separate companies after the spin off, and while it appears to be coincidental that they appear to so far be moving in opposite directions, it really isn't in fact some sort of inverse relationship. PPS will and always depends on earnings, and when they roll in, I'm personally hoping both move in a positive upward direction.
From what management did with NCT share prices, I would assume that the NRZ management would have a similar record in the long run. After all the management got equal shares on the split as well as us lowly shock holders.
Well, I think it does have a temporary inverse relationship. Currently, there has to be similar ownership due to the recent spin-off. I would bet that some shareholders are selling one and buying the other creating the inverse relationship. This will slowly (maybe fast) dissipate as the common ownership becomes less.
I think it initially was people bailing out of NRZ because they perceived it to be the lower yield of the two and moving into NCT which they perceived as the higher yield. The recent drop of NCT is probably due to the secondary. My plan is to hold both going forward and give them time to operate under their respective business models for a few quarters then see where we are.
I also think its a matter of risk assessment.. Some funds may not want to be in NRZ's business model which carrries higher risk but, higher potential rewards.. Likewise, some funds may want to be in senior housing. Over time, the gyrations should reduce.