I have several of these papers near me in Michigan and they are virtually worthless and a laughingstock in the community. Over priced and bad writing.Only good for rapping fish in. Just stick with commercial underwriting and end it there! There will be millions and millions of seniors wasting there hard earned at these nursing/assisted centers so why not finance this area?
I have wondered about the quality of these investments. I live in a town of 12K, and our paper operates on a shoestring budget, editors rarely last a years, staff poorly paid, etc. etc. But, it does generate enough revenue to keep the doors open, six days a week, for decades. This opportunity reminds me of my favorite rule about stocks - there is no such thing as a bad stock, just bad stock prices. Nokia is a "bad stock", but not at $3! Same thing, possibly, for bad newspapers. I'll take a 20% dividend yield on my newspapers. Which ones are in Michigan?
Sentiment: Strong Buy
I've been accumulating NCT since 2007 so I've seen what the guys who run it can do over time. IMO, if they think they can put a deal together and issue stock in a new company that will take no cash out of my pocket but start putting money (or more re-invested shares) in it, I trust them.
NCT is taking a large, non performing loan and turning it into an equity position in a new company. Good for NCT, good for shareholders. It will be a C corp, completely separate from the parent REIT. If you own NCT and don't want the new stock nobody is telling you to hold it. This has absolutely nothing to do with NCT's build out of their senior living assets. Shareholders in NCT have not been disappointed one iota by the company's performance over the past 2 years. You apparently haven't read management's presentation on the spin off or didn't understand it.