So, I want some suggestions. I think I know what I am going to do, but I like to get opinions from the regulars around here. My wife is about to dump her yearly deposit into her IRA, I am trying to decide if I buy into NCT now or wait and just throw it into NRZ? Any suggestions? She is slightly overweight in NCT, but I don't mind being a little more overweight as I will just reinvest the dividends into other things. Thanks!
It depends on what you think both stocks will do shortly after the split. Will they both go towards their peers or just meander? I think it depends on the deals they announce shortly after the split. I would suspect that there is something up their sleeves with respect to the commercial (NCT) side. We all understand the potential of the MSR's but it seems we do not discuss the potential of NCT too much.
Gogo, I'm also overweight in NCT but here's the way I see it: After the spin off, I'll only have half as much NCT. The rest is in NRZ which will have a different business model so instant diversification.
I've almost decided to keep both stocks. While the near term upside for MSRs is better, imo, the mortgage side is pretty darn good,too. And I'm in this primarily for the dividends, so------
But that brings up a dilemma I'm certain I'll face in the coming months. Should I walk away from such a tremendous price increase and lose the dividend, which for me is signficant. I don't know.
gogo I usually never chase beta. It may have more upside to it while you wait, but getting in on sound technical footing is the safest bet. If not just dollar cost average the position. In the near term NRZ may have some selling pressure from index funds and etf's. I stress may.
I'm keeping both at the same for the split and I'll use new capital to buy into both at any pullback. The ratio will chnge but I think for NCT if they can build up the senior care living it could lead to another spin off or some type of unlocking value in the future. Wes has hinted at this and the presentations have shown this too. The senior care living is a slower ramp up but I think if NCT can get this investment to 400 to 500 million they could spin it off as the same. THat's why I'm calling NCT FIG's incubator. What ever you choose good luck and if your motives are long term I guess at any price below what you think their 2 to 3 year valuation would be.
Gogo, as I've stated before, I'm going to add to the sizeable chunk of NRZ I'll get by selling some of my NCT. I think the near term upside (1 year) for NRZ outweighs NCT's. Amazing volume this morning, almost 1 million shares in the first 1/2 hour.