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Newcastle Investment Corp. Message Board

  • aghfella aghfella Mar 21, 2014 12:35 PM Flag

    DD and dumb luck-What a great buy.

    The best buy I ever made was NCT. In 2007 I bought 1000 shares for about $25.00. It started down in about a week on no information, so at $18.00 I averaged down and bought another 1000 shares, the next week on no information it was down to $12.00, once again I averaged down on a 1000 shares. The next week the announcement came, NO MORE DIVIDENDS. I was one sick guy. Everyone in NY knew, but no one in Arizona had a clue. For what ever reason I didn't sell. The price went down $00.47. In the next few weeks it climbed back to $00.75, I bought 5000 shares, then $1.00 I bought 5000 more shares. Long story short I ended up with about 40,000 shares at a average cost of $4.10. Then one day I looked at it and I was up $1.00 and decided to sell, but I didn't, even when it got to $11.50. What an idiot. I always did dividend reinvestment so today I have about 43,000 shares of NCT and NRZ each. Plus a little over 2800 shares of New Media. I am so proud of myself for doing my DD and crunching all the numbers in 2007 to make such a wise investment. Who said buy and hold is a bad investment plan?

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    • so why are ya giving alllll yer $$$ back stoooopid

    • Nice shooting, aghfella! You won the investment derby by letting NCT management execute their business plan. NCT got whacked by the financial crisis and 2008/9 recession, but that set NCT up for a powerful rebound! I think that the best advice for stock investors most of the time is: "Don't do something--just stand there"! Hyperactive stock traders tend to rack up high trading costs more than trading profits. And, I'd not be surprised if "past is prologue" as concerns NCT. NCT management could have a few more rabbits to pull out of their hats. I like management's laser-like focus on creating shareholder value. Over the past 3 years or so, CEO Ken Riis has executed brilliantly. Chairman Wes Edens is a Wall Street "master of the universe" type who has applied financial engineering and innovation that has enriched NCT shareholders. I like that Edens "eats his own cooking" by virtue of his large ownership position in NCT shares. So, I intend to "stay on the NCT train" as Wes Edens and Ken Riis continue to identify profitable economic niches for Newcastle to exploit for the benefit of shareholders. IMO, "Mr. Market" is not fully pricing in the growth characteristics of NCT.

      Sentiment: Strong Buy

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