Yes, NRF has some problems, mainly management. But its asset are very desirable in this low interest rate enviroment. Plus most of its asset should provider relative stable income even in a bad economic. The leverage is a little heavy, but still within the 60-70% acceptable range.
Right now, NRF is priced like some terrible thing like big cash flow drop is going to happen. The stock will rebound on any good news.
I would not surprise if some one take it private like an insurance company, they are getting killed by the low interest rate, this will be a perfect fit for a large insurance company.
I was so amazed people would pay 100 time p/e for a stock is hardly justify by any metric. If you spend 1 million dollar to buy a restaurant that will make 10,000/year, I bet this had to be huge potential.
This stock is only worth 40 bucks.
a 60 million turn compare with the third quarter.
After tax and one time capital loss the net was 19 million.
I really do not know the stock was sold out after market.
If you look at next quarter, every division will make money.
Actually, Even they have to raise the reserve, they should do it now. The market price the company's life division to bankrupt, perfect time to ask the rate increase, seems every state approved their request other then MA. Even New York, California pretty much granted all the rate increase request from them.
is the hot thanks low interest rate. Read Metlife news this morning, lots of people wants to get in to this space. Buy RAS is a very logical way to get in to this space for last institution.
At current pace, they should still be able to generate relative stable cash flow around 50-70 million dollar per year.
Even through RAS is very cheap at these level, their senior debt is the most safe bet. Of course, investors do not have much confident on the management.
No question, it was a year to forget for GNW investors. There are simple bright spot in 2016.
1) New York unexpectedly approved a very sizable rate increase for LTC, Also California gave a green light for 30% rate increase in November. We should see the impact in 2016.
2) US mortgage insurance should perform better then this year
3) Corportation interest should be reduced by 7 million per quarter, European mortgage insurance should be sold in January.
So I am very hopeful.
Book value fast approaches the market value. operation profit 0.40 just for last quarter after years of losses.
Not mention similar companies sell for 50 times earning in China.
6.20? what am I missing here?
Get most of my lost on REIT this year back on this gamble.
What a move, rarely see this kind of move for REIT recently!.
NRF prefered also had very nice move after took a big hit on Monday. So irrational, NRF might have few problems but the business as a whole is never in any trouble!
Some PE(Wen Shai Capital, not sure if I translate correct) fund offered 8.50 to go private. If they can make this kind of money in one quarter, they really need to up at least $20
just make it simple.
Currently, NRF has roughly 14 billion in real estate holding(like senior home/hotel...)
3 billion dollar real estate debt investment including private Equity
Back by roughly 10 billion in debt, among them 5 billion is fixed and 5 billing floating(tie to the labor).
What is good to have big earning. Find CEO comments interesting. You can get some cash by selling the stock from stock dividend, what is the point? he failed to mention my holding would be cut by 5% if they issue 5 percent more shares.
He still lives in the 90's when stock split was perceive to add the value for the share holders. Stock dividend is not really a dividend just different count for the same amount of money.
For those think dividend cut is end of the world, think again. Normal dividend payout is only around 8-9%. The reason small REIT had been punished because of the leverage. If investors start to gain some confident about their dividend coverage, the stock will do just fine.