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Post by xray on Nov 29, 2022 20:47:07 GMT
Update to our Penny Stocks:
1... KYN (NAV 10.40, MktPrc 9.07 in early morning trading. -Overall analysis currently: 345 (must be >+294) -Remains 10Star -Average Star rating currently +9.42 -Rf +642 (must be >+570) -Very good Discount currently
2... RITM ... was NRZ-Name change ... (Book Value 12.10, MktPrc 8.90 in early morning trading. -Overall analysis currently: 328 (must be >+294) -Remains 10Star -Average Star rating currently +8.46 -Rf +628 (must be >+570) -Very good Discount currently
Article on this past Sunday: TipRanks TipRanks ‘Perfect 10’ List: These 2 High-Yield Dividend Stocks Tick All the Boxes Sun, November 27, 2022, 6:46 PM
EPD +1.02%
RITM-PC -0.96%
In a financial environment riddled with unprecedented levels of uncertainty, investors are at wits’ end. When it comes to finding an investment strategy that will yield returns, traditional methods might not be as dependable. So, how should investors get out of the rut?
In times like these, a more comprehensive stock analysis can steer investors in the direction of returns. Rather than looking solely at more conventional factors like fundamental or technical analyses, other metrics can play a key role in determining whether or not a particular stock is on a clear path forward.
TipRanks offers a tool that does exactly that. Its Smart Score measures eight key metrics including fundamentals and technicals while also taking into account analyst, blogger and news sentiment as well as hedge fund and corporate insider activity. After analyzing each metric, a single numerical score is generated, with 10 being the best possible result.
Using the Best Stocks to Buy tool, we were able to pour through TipRanks’ database, filtering the results to show only the names that have earned a “Perfect 10” Smart Score and offer a high-yield dividend payment, of 7% or better. We found two that managed to tick all of the boxes. Let’s jump right in.
Enterprise Products Partners (EPD)
We'll start with Enterprise Products Partners, a midstream company in the energy industry. Midstream refers to the companies that connect well heads, where hydrocarbons are extracted, with the customers further down the distribution line; midstream firms control networks of pipelines, rail and road tankers, barges, refineries, processing plants, terminal points, and storage tank farms. Enterprise makes its business in this area, moving crude oil, natural gas, natural gas liquids, and refined products through its network, which is centered on the Gulf Coast in Texas and Louisiana but extends into the Southeast, Appalachia, the Great Lakes, the Mississippi Valley, and the Rocky Mountains.
This adds up to a lucrative business, and in the recent 3Q22 financial results, Enterprise reported a net income of $1.39 billion, 17% year-over-year. On a per-share basis, diluted EPS came to 62 cents, 10 cents better than the year-ago result.
Of particular interest to dividend investors, the distributable cash flow rose 16% y/y to reach $1.9 billion. This was more than enough to fully cover the company’s declared dividend payment of 47.5 cents per common share. On an annualizes basis, the dividend comes to $1.90 per share, and offers a solid yield of 7.6%. The company has a reliable dividend payment history going back to 1998.
Covering this stock from Raymond James, 5-star analyst Justin Jenkins describes Q3 as ‘another steady quarter,’ and writes, “The unique combination of asset integration, balance sheet strength, and ROIC track record at Enterprise (EPD) remains best-in-class. We see EPD as well-positioned in midstream from a volatility vs. recovery perspective, with most segments performing well... Financial momentum only expands the opportunity for capital returns, with distribution growth in progress and buybacks hopefully becoming more material over time. Meanwhile, EPD still trades at an attractive 7.6% yield…”
To support his bullish thesis, Jenkins rates EPD shares a Strong Buy, and his price target of $32 implies a gain of 29% on the one-year time frame. (To watch Jenkins’ track record, click here)
The view from Raymond James is hardly the only bullish take here; this stock gets a Strong Buy consensus rating based on 10 recent analyst reviews that include 9 to Buy and 1 to Hold (i.e. Neutral). The shares are selling for $24.75 and their $31.67 average price target suggests an upside of 28% over the next 12 months. See EPD stock analysis.
Rithm Capital (RITM)
The second stock we’ll look at is Rithm Capital, a real estate investment trust (REIT). REITs are perennial dividend champs, as tax code regulations require them to return a high share of profits directly to investors – and dividends are a convenient mode of compliance. Rithm, which until August of last year operated as New Residential, has its hands in both lending and mortgage servicing to investors and consumers. The firm’s portfolio is made up of a variety of instruments, including loan originations, real estate securities, commercial property and residential mortgage loans, and MSR-related investments. That last, MRSs, makes up 26% of the portfolio; mortgage servicing makes up 42% of the total. The company boasts over $7.5 billion in net equity investments.
In its last reported quarter, 3Q22, Rithm showed a total of $153 million in earnings available for distribution. This came out to 32 cents per common share. These figures compare well to the $145.8 million total and 31-cents per share reported in the year-ago quarter.
More importantly, the ‘earnings available for distribution’ easily covered the 25 cent common share dividend declared in September. At the $1 annualized rate, Rithm’s dividend yields an impressive 11%.
Among the bulls is BTIG analyst Eric Hagen, who has been covering Rithm, and he’s impressed with what he sees. "We like the stickiness of the cash flows in a seasoned MSR portfolio, which we think supports the financing and liquidity support it carries behind the asset. Over the near term we see less room for dividend growth, which to a degree reinforces the discounted valuation. That said, with a longer-term view, we think the quality of the return for the level of risk in the stock is being undervalued… We think scalability is one of the key division points we see for valuations across the capital structure in our coverage right now, particularly among most originator/servicers where the leverage leans more toward unsecured debt", Hagen opined. Hagen goes on to give RITM shares a Buy rating, and he sets a price target of $13 to indicate potential for a robust upside of 44% in the coming months.
Like Hagen, other analysts also like what they’re seeing. With 6 Buys and just 1 Hold, the word on the Street is that the stock is a Strong Buy. In addition, the $11 average price target implies 22% upside potential. See RITM stock analysis.
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Comment: Not currently into EPD but will make a analysis this coming weekend....
Live Long and Prosper....
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Post by richardsok on Nov 29, 2022 23:27:46 GMT
Xray -- you may have noticed I've been locked into investing/book matters elsewhere. That is why I haven't posted comments on your contributions lately. But it's not for lack of interest. I continue to follow your posts with great interest.
FWIW.
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Post by xray on Nov 30, 2022 15:40:51 GMT
richardsok, Thanks for your post. I was thinking of moving on (better use of my time) since many investors do not follow CEF's like I do (talking to myself in sharing information). With that said.... Zacks Rithm Capital Corp. (RITM) Is a Trending Stock: Facts to Know Before Betting on It Zacks Equity Research Wed, November 30, 2022, 9:00 AM In this article: RITM-PC +0.57% Rithm (RITM) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Over the past month, shares of this real estate investment trust have returned +4.5%, compared to the Zacks S&P 500 composite's +1.7% change. During this period, the Zacks Financial - Miscellaneous Services industry, which Rithm falls in, has gained 2.6%. The key question now is: What could be the stock's future direction? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Revisions to Earnings Estimates Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. For the current quarter, Rithm is expected to post earnings of $0.27 per share, indicating a change of -32.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.4% over the last 30 days. The consensus earnings estimate of $1.26 for the current fiscal year indicates a year-over-year change of -14.9%. This estimate has changed +3.8% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $1.29 indicates a change of +2.4% from what Rithm is expected to report a year ago. Over the past month, the estimate has changed +6.6%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Rithm. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. For Rithm, the consensus sales estimate for the current quarter of $799.63 million indicates a year-over-year change of +267.6%. For the current and next fiscal years, $4.73 billion and $3.38 billion estimates indicate +585.5% and -28.6% changes, respectively. Last Reported Results and Surprise History Rithm reported revenues of $912.84 million in the last reported quarter, representing a year-over-year change of +378.9%. EPS of $0.32 for the same period compares with $0.44 a year ago. Compared to the Zacks Consensus Estimate of $862.03 million, the reported revenues represent a surprise of +5.89%. The EPS surprise was +28%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period. Valuation No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Rithm is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Rithm. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Live Long and Prosper....
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Post by xray on Dec 19, 2022 22:51:50 GMT
ALERT..... RITM
Insider is getting "GRANT" awards (currently 578,000sh on 12/8).... RITM closed 8.62 today (8.63 after trade currently) and was up $0.56....
Live Long and Prosper....
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Post by xray on Dec 20, 2022 21:54:25 GMT
Zacks Rithm Capital (RITM) Announces Q4 Dividends, Share Buybacks Zacks Equity Research Tue, December 20, 2022, 11:30 AM EST
Rithm Capital Corp. RITM announced that its board authorized fourth-quarter 2022 common and preferred stock dividends. The company also renewed its stock buyback program in a shareholders’ value-boosting move.
The fourth-quarter dividend of 25 cents has been unchanged sequentially. The amount will be paid out on Jan 27, 2023, to stockholders of record as of Dec 30, 2022. Based on the closing price of $8.62 per share on Dec 19, 2022, the stock has a dividend yield of 11.6%, much higher than the industry average of 2.6%.
With such a high dividend yield, the question arises if that is sustainable.
Companies in the mortgage market were affected this year due to increasing interest rates and the underperformance of mortgage-backed securities. However, Rithm Capital draws support from its diversified business model, which provides it with some relief from the volatility witnessed in the mortgage business.
RITM’s mortgage servicing business is expected to benefit from rising interests. As growing interest rates affect refinancing activities, companies like Rithm Capital are expected to receive servicing fees for a longer period. This will likely provide the company with steady cash flows, supporting its high dividend yields.
While this year witnessed aggressive rate hikes, the intensity is expected to slow down. With lower interest rate volatility, RITM’s mortgage origination business is expected to benefit. Thanks to the improving business scenario, the company’s shareholder value-boosting efforts are expected to remain strong.
Rithm Capital announced a share buyback program of up to $200 million of common shares, along with up to $100 million of preferred shares program. The repurchase programs are expected to run through Dec 31, 2023. The new programs are expected to replace the previous similar ones, which were scheduled to expire on Dec 31, 2022.
For the fourth quarter, RITM’s board also declared Series A, Series B, Series C and Series D dividends per share of around 47 cents, 45 cents, 40 cents and 44 cents, respectively. The dividends will be paid out on Feb 15, 2023, to preferred stockholders of record as of Jan 13, 2023.
Zacks Rank & Key Picks
Rithm Capital currently has a Zacks Rank #3 (Hold).
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Live Long and Prosper....
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Post by xray on Jan 16, 2023 18:47:01 GMT
Post by xray on Nov 13, 2022 at 4:30pm Previous: 1...NRZ (still in play) 2...KYN (CEF still in play) - Doing well as expected and undervalued 3...USDP (still in play) - neutral until they get their terminals rearranged properly 4...TWO - (DELETED" with their 1:4 reverse stock split .... Taken off watch list 5...WMC (1.26 this morning and continuing to collapse as expected - stock certificates valued as wallpaper) ... Taken off watch list Added to list: 1... HGLB (CEF continues in play ... Doing well .... see HGLB string and other comments ... closed @ 9.70 ....GLO (CEF in play for "NEXT YEAR" after 12/31/22) ... way over valued and in a continuous crash mode because of their policy of a fixed distribution tied to 12/31/21 which cannot be maintained in this environment ....GLQ (CEF in play for "NEXT YEAR" after 12/31/22) ... way over valued and in a continuous crash mode because of their policy of a fixed distribution tied to 12/31/21 which cannot be maintained in this environment ....GLV (CEF in play for "NEXT YEAR" after 12/31/22) ... way over valued and in a continuous crash mode because of their policy of a fixed distribution tied to 12/31/21 which cannot be maintained in this environment
Current Status:
...................Current MktPrc ............. After Market .......... Rf (+0.900 required)
1... RITM (NRZ) ... 9.04 .......................... 9.05 ..................... +1.174 2... KYN .............. 8.95 .......................... 9.02 ..................... +1.070 3... USDP ............ 4.18 .......................... 4.25 ..................... +0.998 4... HGLB ............ 9.70 .......................... 9.70 ..................... +1.045 5... (searching) 6... GLO .............. 6.17 (on hold) ............ 6.17 ...................... +0.808 7... GLQ .............. 7.47 (on hold) ............ 7.47 ...................... +0.756 8... GLV .............. 7.26 (on hold) ............. 7.26 ...................... +0.786 9... CHW ............. 5.97 .......................... 6.00 ...................... +0.835 10..MFD .............. 8.58 .......................... 8.58 ...................... +0.918 11..VGI ............... 7.83 .......................... 7.83 ...................... +0.745 12..ZTR ............... 6.61 ......................... 6.61 .......................+0.984
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New Update:
Updated: 1...NRZ (still in play) .... NRZ changed their sysmbol to "RITM". (Still in play) 2...KYN (CEF still in play) - Doing well as expected and undervalued .... No status change 3...USDP (still in play) - neutral until they get their terminals rearranged properly .... Remains "neutral" waiting Qtrly report 4...TWO - (DELETED" with their 1:4 reverse stock split .... Taken off watch list .... No longer following 5...WMC (1.26 this morning and continuing to collapse as expected - stock certificates valued as wallpaper) ... Taken off watch list. No longer following
Added to list (data COB Friday 1/13/23):
1... HGLB (CEF continues in play ... Doing well .... see HGLB string and other comments ... closed @ 9.70.... Closed with MktPrc 10.01/NAV 12.29 / Undervalued and @ discount with Current distribution 9.71% ....GLO (CEF in play for "NEXT YEAR" after 12/31/22) ... way over valued and in a continuous crash mode because of their policy of a fixed distribution tied to 12/31/21 which cannot be maintained in this environment .... New revised 10% distribution announced @ $0.0483/month ($5.796/Yr). Closed with MktPrc 5.14/NAV 5.91 / Undervalued and @ discount with Current distribution 11.27% if considering Mkt will end "UP" by end of year ....GLQ (CEF in play for "NEXT YEAR" after 12/31/22) ... way over valued and in a continuous crash mode because of their policy of a fixed distribution tied to 12/31/21 which cannot be maintained in this environment . New revised 10% distribution announced @ $0.0599/month ($11.88/Yr). Closed with MktPrc 6.56/NAV 7.33/ Undervalued and @ discount with Current distribution 10.81% if considering Mkt will end "UP" by end of year ....GLV (CEF in play for "NEXT YEAR" after 12/31/22) ... way over valued and in a continuous crash mode because of their policy of a fixed distribution tied to 12/31/21 which cannot be maintained in this environment. Dropped from list because of differential between up/down markets
Current Status:
...................Current NAV/MktPrc ............. After Market .......... Distribution or Dividend
1... RITM (NRZ) ... 11.86/8.86 .......................... ..................... 11.29 2... KYN .............. 10.29/9.03 .......................... ..................... 9.71 3... USDP ............ 2.86/3.54 .......................... ....................... 13.95 4... HGLB ............12.29/10.01 .......................... ..................... 9.71 5... (searching) 6... GLO .............. 5.14 (active) ............ ...................... 7... GLQ .............. 6.56 (active) ............ ...................... 8... GLV .............. 6.53 (on exit) ............. ...................... ... Dropped from watch list 9... CHW ............. 5.97 (on exit).............. ...................... ... Dropped from watch list 10..MFD .............. 9.59/8.48 ................. ...................... ........... 9.43 11..VGI ............... 7.50/8.13 ................. ...................... .......... 11.72 12..ZTR ............... 6.93 (RO 6.96) ........... ....................... ........ 13.85
13.. EDF .............. 4.52/4.90 .................... ............................... 14.69 14.. EDI .............. 5.33/5.60 .................... ............................... 15.00
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Live Long and Prosper....
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Post by xray on Apr 2, 2023 21:17:37 GMT
A few "PENNY" securities (out of the ashes) starting to make their early moves (will always be volatile/dangerous and considered not to move with the crowd). The latest is "KYN":
As of 11:59pm ET April 2nd, 2023 Filing Date Transaction Date Insider Name Ownership Type Securities Nature of transaction Volume or Value Price Mar 29/23 Mar 29/23 Baker James C Direct Ownership Common Stock P - Open market or private purchase 10,000 $8.39
KYN finished COB Friday with their NAV at 10.01 with a MktPrc of 8.64 (considerably undervalued IMHO)....
Live Long and Prosper....
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Post by xray on Apr 16, 2023 20:51:53 GMT
Chahta, yogibearbull, anitya, richardsok, chang, Reference: My previous update: Current Status: ................... Previous NAV/MktPrc ............. Current NAV/MktPrc .......... Comments1... RITM (NRZ) ... 11.86/8.86 .......................... 11.86/7.89 .......... Transition in current portfolio / $0.25/Qtr 2... KYN .............. 10.29/9.03 .......................... 10.05/8.53 .......... KMF acquired into KYN / Insider 10k buy @ 8.39 on 3/29 / $0.21/Qtr 3... USDP ............ 2.86/3.54 ............................ 3.21 ................... In transition or restructuring / $0.1235/Qtr 4... HGLB ............12.29/10.01 .......................... 11.79/9.32 .......... 8.5% announced yearly distribution / $0.084/Qtr 5... (searching) 6... GLO .............. 5.14 (active) ............ ........... 5.75/4.89 ............ Reset their Qtrly distribution for current year to realistic $0.0488/Qtr 7... GLQ .............. 6.56 (active) ............ ........... 7.20/6.09 ............ Reset their Qtrly distribution for current year to realistic $0.0599/Qtr 8... GLV .............. 6.53 (on exit) ............. ......... No Change ... Dropped from watch list 9... CHW ............. 5.97 (on exit).............. ......... No Change ... Dropped from watch list 10..MFD .............. 9.59/8.48 ................. .......... 9.60/8.50 ............. Infrastructure play / $0.20/Qtr 11..VGI ............... 7.50/8.13 ................. .......... 8.83/7.78 ............. Cut distribution last year / $0.08/month 12..ZTR ............... 6.93 (RO 6.96) ........... ........ 7.17/6.40 .............. Rights Offering (RO) @ 6.96 / Heavy Insider buying at RO / $0.08/month 13.. EDF .............. 4.52/4.90 .................... ...... 4.17/4.55 .............. Reset their Qtrly distribution for current year to realistic $0.06/month 14.. EDI .............. 5.33/5.60 .................... ....... 4.93/5.58 .............. In May, EDI being folded into EDF / Reset distribution / $0.07/month ---------- Live Long and Prosper....
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Post by xray on Apr 19, 2023 17:59:59 GMT
Chahta, yogibearbull, anitya, richardsok, chang, TipRanks 2 Buy-Rated Dividend Stocks Under $10 With at Least 12% Dividend YieldDo you love dividends? Of course you do — and rightly so! Scholars who study the stock market’s historical performance estimate that over time, the payment (and reinvestment, and compounding) of dividends have contributed anywhere from 30% to 90% of the S&P 500’s total returns. Simply put, if you’re not investing in dividend stocks, you’re doing it wrong. Using the TipRanks platform, we’ve looked up two stocks that are offering dividends of at least 12% yield – that’s almost 7x higher the average yield found in the markets today, and best of all, they all offer investors a low cost of entry, under $10 per share. Let’s take a closer look. Seven Hills Realty Trust (SEVN)We’ll start with Seven Hill Realty Trust, a real estate finance company operating as a real estate investment trust (REIT) with a focus on middle market and transitional commercial real estate in the US markets. In short, Seven originates and invests in first mortgage commercial real estate loans. The company’s portfolio boasts $727.5 million in total loan commitments, with an average weighted maximum maturity of 3.3 years. Seven currently holds approximately $37 billion in total assets under management. Like most firms operating in the REIT universe, Seven has a substantial history of reliable dividend payments, going back to 2012 – with a total history of dividends stretching back to 2007. Like its niche peers, Seven’s dividend policies are impacted by governmental regulations that require a certain percentage of profits to be returned directly to shareholders each year; dividend make a convenient mode of compliance, and the result is, usually, a reliable payment and a high yield. In Seven’s case, the dividends are supported by income numbers that are currently showing mixed year-over-year results. In the last quarter reported, 4Q22, the company derived its earnings from a top line of $9.3 million, which came in below the $10.5 million forecast. The adjusted distributable earnings, an important metric for dividend investors, came in at $5.37 million, for a 76% y/y gain; on a per share basis, the adjusted distributable earnings came in at 37 cents per common share, beating the forecast by 48% and also representing an increase of 76% year-over-year. The strong gains in distributable earnings gave management confidence, and back in January Seven boosted its quarterly dividend by 40%. The same day of that announcement, the shares jumped 15%. In Seven’s last dividend declaration, scheduled for a May 18 payment, the company kept the raised dividend of 35 cents per common share. At the annualized rate of $1.40 per share, the dividend is currently yielding a sky-high 14%. In the eyes of JMP analyst Chris Muller, all of this adds up to a stock that deserves a second look. Muller takes special note of the current interest rate regime in his comments, writing: “Our new model reflects our March 2023 interest rate forecast, which projects YE23/YE24 one-month LIBOR rates of 4.55%/3.50%. We have modeled the quarterly dividend staying at the newly increased level of $0.35 per share through 2024… With SEVN shares now trading at just 0.55x December 31 GAAP BV of $18.46, we believe the current discount to book value is unwarranted given the growth in earning assets, a tailwind from rising interest rates, and potential for further meaningful dividend growth.” Quantifying his stance, Muller gives SEVN shares an Outperform (i.e. Buy) rating, with a $12.50 price target that indicates potential for a 26% one-year upside potential. Based on the current dividend yield and the expected price appreciation, the stock has ~40% potential total return profile. (To watch Muller’s track record, click here) Zooming out, we find that SEVN gets a Moderate Buy rating from the analyst consensus, based on 2 recent positive reviews on file. The shares are trading for $9.91, and their average price target, standing at $13.75, implies 38% gain out to the one-year horizon. (See SEVN stock forecast) Rithm Capital (RITM)For the second stock on our list, we’ll turn to Rithm Capital, another REIT, operating as an internally-managed firm. The company has operations at ‘both ends’ of its business, both in mortgage loan origination and in mortgage servicing rights (MSRs). Rithm’s investment portfolio leans heavily toward the servicing end, with 44% composed of mortgage servicing, and another 29% composed of MSR-related investment. Another 8% of the portfolio is mortgage loans receivable, and 5% is listed as origination, or original mortgage loans. The remainder of the portfolio is made up of real estate securities and properties and residential mortgage loans. A look at some of the company’s basic numbers gives an idea of Rithm’s quality. The company has approximately $32 billion in total assets, including $8.89 billion in MSR and related assets. Rithm could boast some 3 million customers as of the end of 2022. The company was formed through a restructuring in the summer of 2021, and since that time it has paid out more than $4.4 billion in dividends to its investors. The dividends that Rithm pays out are supported by a solid base of earnings available for distribution, totaling $156.9 million as of the end of 4Q22. This was a non-GAAP result, coming to 33 cents per share, 4 cents better than had been predicted. The earnings for distribution showed a modest increase from 3Q22’s $153 million and 32 cents per share. Rithm’s total revenue in Q4, at $762.4 million, was $12.3 million better than the expectations. Based on the Q4 earnings, Rithm declared a 25 cent dividend per common share, to be paid out on April 28. The $1 annualized payment gives the dividend an impressive yield of 12.6%, and marks the seventh quarter in a row with the dividend at this level. Rithm paid out $118.6 million in total dividends in Q4, and $470.4 million in 2022 as a whole. The total dividends paid in 2022 were up 14.8% year-over-year. In his coverage of this Rithm for BTIG, analyst Eric Hagen is impressed by the company’s ability to keep its stable dividend, and notes that the MSRs in the portfolio show plenty of potential for maintaining the earnings base. “We like the stock here in part because we see dividend stability mostly being a function of slow prepays in the MSR portfolio, and less conditioned on the origination segment returning to profitability in the near term. We expect MSR valuations are still finding some support from higher short-term interest rates, although to that end, we think growing expectations for the Fed to cut rates later this year could limit some upside potential for servicing valuations. Roughly half of the company’s capital is in the MSR portfolio, but with the leverage it has there, we estimate it drives closer to 60-75% of core earnings,” Hagen opined. Hagen’s analysis indicates that RITM shares are worth buying, with a price target of $13 that implies a substantial 64% upside over the next year. (To watch Hagen’s track record, click here) Overall, there are 4 recent analyst reviews of this stock on file, and they include 3 Buys against a single Hold, for a Strong Buy consensus rating. The stock is selling for $7.89, and its $11.25 average price target suggests it will grow ~43% by year’s end. (See RITM stock forecast) ---------- Comment: SEVN has been added to my current tracking (watch list) program (shown previously)....
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Post by richardsok on Apr 19, 2023 23:10:45 GMT
Good post, x. Thank you.
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Post by xray on May 4, 2023 20:47:00 GMT
Chahta, yogibearbull, anitya, richardsok, chang, Reference: My previous update: Current Status: ................... Previous NAV/MktPrc ............. Current NAV/MktPrc .......... Current NAV/MktPrc .................................... Comments 1... RITM (NRZ) ... 11.86/8.86 .......................... 11.86/7.89 ................ 11.67/7.70 ................................................ Reported book value 3/31 @ 11.67 / $0.25/Qtr 2... KYN .............. 10.29/9.03 .......................... 10.05/8.53 .......... ..... 9.64/8.00 ................................................. Insider 10k buy @ 8.39 on 3/29 / $0.21/Qtr 3... USDP ............ 2.86/3.54 ............................ 3.21 .......................... 1.96 .................................................... Major problems/ Qtrly div eliminated / Dropped from watch list4... HGLB ............12.29/10.01 .......................... 11.79/9.32 ............... 11.24/8.29 .................................................8.5% yearly distribution / $0.084/ Monthly5... Next report will add another security 6... GLO .............. 5.14 (active) ............ ........... 5.75/4.89 .................. 5.70/4.63 ................................................. Reset Qtrly distribution for current year to realistic $0.0488/Qtr 7... GLQ .............. 6.56 (active) ............ ........... 7.20/6.09 .................. 7.10/5.80 ................................................. Reset Qtrly distribution for current year to realistic $0.0599/Qtr 8... GLV .............. 6.53 (on exit) ............. ......... No Change ... ............. No Change ............................................... Dropped from watch list9... CHW ............. 5.97 (on exit).............. ......... No Change ................. No Change ............................................... Dropped from watch list10..MFD .............. 9.59/8.48 ................. .......... 9.60/8.50 ................... 9.56/8.29 ................................................ Infrastructure play / $0.20/Qtr 11..VGI ............... 7.50/8.13 ................. .......... 8.83/7.78 ................... 8.86/7.65 ................................................ 12.5% distribution policy / $0.1021/Month 12..ZTR ............... 6.93 (RO 6.96) ........... ........ 7.17/6.40 ................... 7.03/6.30 ................................................ RO @ 6.96 / Heavy Insider buying at RO / $0.08/Month 13.. EDF .............. 4.52/4.90 .................... ...... 4.17/4.55 .................... 4.80/4.18 ................................................Reset Qtrly distribution for current year to realistic $0.06/month 14.. EDI .............. 5.33/5.60 .................... ....... 4.93/5.58 .................... 4.05/5.07 .............................................. EDI is being folded into EDF / Reset distribution / $0.07/month ---------- Live Long and Prosper....
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Post by xray on May 12, 2023 17:14:02 GMT
Chahta, yogibearbull, anitya, richardsok, chang, Update on SEVN: Insider buying activity on 5/1 for 1,000sh @ 9.86. Current early morning trading MktPrc 9.06.... Update on RITM (NRZ): Insider buying activity on 5/10 for 32,000sh @ 7.94. Current early morning trading MktPrc 7.87.... Update on GLO: Insider buying activity on 5/10 for 25,000sh between 4.75-4.81. Current early morning trading MktPrc 4.75.... Update on GLQ: Insider buying activity on 5/10 for 25,000sh between 5.89-6.00. Current early morning MktPrc 5.92.... --------------------------------- Live Long and Prosper....
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Post by richardsok on May 12, 2023 21:21:40 GMT
X-
GLO & GLQ call them selves Global but are almost entirely US large caps, paying out little, if any of the funds' distributions. Both are a bet on managers' savvy; in this market where just a few winners dominate gainers, it's a bet I'll pass. Deep discounts, though. RITM should have reduced earnings next year, unless interest rates come down meaningfully -- but it still should earn enough to pay out the distys ahead. Good news is it's holding strong at previous support levels. Good to see some insider buying at last; their ownership up to now has been practically nil.
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Post by xray on May 13, 2023 18:04:28 GMT
richardsok, Your: GLO & GLQ call them selves Global but are almost entirely US large caps, paying out little, if any of the funds' distributions. Both are a bet on managers' savvy; in this market where just a few winners dominate gainers, it's a bet I'll pass. Deep discounts, though. RITM should have reduced earnings next year, unless interest rates come down meaningfully -- but it still should earn enough to pay out the distys ahead. Good news is it's holding strong at previous support levels. Good to see some insider buying at last; their ownership up to now has been practically nil. ---------- GLO/GLQ: They pay out distributions that have been reduced substantially from last year (see earlier postings) when their NAV was then crashing (each month) from their monthly distribution payout's that were always determined each year on 12/31. The current payouts (roughly 10%/Yr currently ... $0.048 and $0.0599 respectively until 1/1/24) are currently in line for any market turnaround (expected this year sometime, hopefully in our lifetime) where the NAV will be expected to "reverse" itself and substantially outgrow the monthly payout distributions. Add to this that anytime CEF's are paying out 10% dividends and distributions, the MktPrc "cannot" be expected to grow but the NAV should over time. Looking back to the 3/19 time frame, GLO and GLQ have increased both their NAV and MktPrc's as expected (5.55/4.59, 6.94/5.78 to 5.73/4.75/7.14/5.92 respectively during the market volatility.... RITM: Another security biding its time (IMHO). Looking back to 3/19, RITM increased their MktPrc from 7.72 to 7.93 (holding their own) while their book value is 11.67 currently. We have to keep in mind that we are playing with "Penny Stocks" and they are usually volatile.... Some of us track insider buying/selling very closely to "verify" our current analysis. Early warning prevails IMHO. ChatGpt is a interesting AI and some of us should have it updated into our computers by 6/1. Good now but the verification cycle takes too long IMHO.... Live Long and Prosper....
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Post by xray on May 22, 2023 16:00:25 GMT
richardsok, "For dividend investors" Zacks Rithm Capital (RITM) Reaches 10-Year Mark, $32B in Assets Zacks Equity Research Wed, May 17, 2023, 9:00 AM EDT Rithm Capital Corp. RITM announced that the company is celebrating its 10th year as a publicly traded firm. The company was launched in May 2013 and kept evolving to reach its current structure. Over the past decade, its shares fell 43.1%, while the industry declined 31.4% but the finance sector increased 39.8%. During this time frame, Rithm Capital’s total assets increased to around $32 billion from almost $3 billion. Its total equity also grew from $1 billion to around $7 billion. To date, it paid dividends of around $4.6 billion. Its dividend yield of 12.7% is significantly higher than the industry average of 2.5%. The company changed its management structure from external to internal in June 2022 and launched a private capital business. This diversified its business and positioned it for significant growth in the long run. Combined pre-tax income from its Origination & Servicing businesses was $164 million in the first quarter. At the first-quarter end, its MSR portfolio totaled $603 billion in unpaid principal balance. In the last reported quarter, RITM’s revenues reached $783.4 million, up from the year-ago level of $225.4 million. Also, its bottom line jumped to 35 cents per share, beating the Zacks Consensus Estimate of 32 cents. For 2023, the consensus metric for earnings is pegged at $1.39 per share, indicating 6.1% year-over-year growth. It beat earnings estimates in all the past four quarters, with an average of 14.5%. Rithm Capital currently has a Zacks Rank #2 (Buy). ---------- Comment: Currently RITM (NRZ) data indicates that we should expect a dividend increase (currently 12.17% at a mKtPrc of 8.22) ) against their current book value of >11.00.... We must keep in mind that "Penny" stocks will "ALWAYS" be volatile but currently, RITM with their insider buy at 7.94, remains appealing (IMHO).... Live Long and Prosper....
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Post by xray on Jun 4, 2023 14:02:22 GMT
Simply Wall St. Rithm Capital Corp. (NYSE:RITM) surges 4.4%; individual investors who own 54% shares profited along with institutions Simply Wall St Fri, June 2, 2023, 11:04 AM EDT In this article:
RITM +3.86%
Key Insights
Rithm Capital's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
A total of 25 investors have a majority stake in the company with 33% ownership
45% of Rithm Capital is held by Institutions
If you want to know who really controls Rithm Capital Corp. (NYSE:RITM), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual investors with 54% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Individual investors gained the most after market cap touched US$4.0b last week, while institutions who own 45% also benefitted.
In the chart below, we zoom in on the different ownership groups of Rithm Capital.
View our latest analysis for Rithm Capital
ownership-breakdown ownership-breakdown What Does The Institutional Ownership Tell Us About Rithm Capital?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Rithm Capital does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Rithm Capital's historic earnings and revenue below, but keep in mind there's always more to the story.
earnings-and-revenue-growth earnings-and-revenue-growth Hedge funds don't have many shares in Rithm Capital. Looking at our data, we can see that the largest shareholder is The Vanguard Group, Inc. with 9.5% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 5.1% of common stock, and Bank of America Corporation, Asset Management Arm holds about 2.0% of the company stock.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Rithm Capital
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that Rithm Capital Corp. insiders own under 1% of the company. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around US$21m worth of shares (at current prices). It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.
General Public Ownership
The general public -- including retail investors -- own 54% of Rithm Capital. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
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Live Long and Prosper....
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Post by xray on Jun 4, 2023 15:00:51 GMT
For current income oriented investors:
ACCESSWIRE Clough Global Closed-End Funds Announce Share Repurchase Programs Clough Global Closed-End Funds Fri, June 2, 2023, 5:27 PM EDT In this article:
GLO +1.69%
GLQ +1.19%
GLV +2.40%
DENVER, CO / ACCESSWIRE / June 2, 2023 / The Boards of Trustees (the "Boards") of the following closed-end funds (the "Funds") advised by Clough Capital Partners L.P. (the "Advisor") announced today that each Fund has approved a share repurchase program under which it may purchase, over a one-year period beginning on June 5, 2023, up to 5% of its outstanding common shares in open market transactions:
Clough Global Equity Fund (NYSE MKT: GLQ)
Clough Global Opportunities Fund (NYSE MKT: GLO)
Clough Global Dividend & Income Fund (NYSE MKT: GLV)
The share repurchase programs are designed to enhance shareholder value by permitting the Funds to purchase their shares when trading at a discount from their net asset value per share. Charles I Clough, Jr., Chairman of the Advisor, commented "Considering that the Funds traded at a premium as recently as September 2022, we see value in the Funds' ability to repurchase shares at their current discounts to NAV, which can be beneficial for all shareholders."
The amount and timing of repurchases will be at the discretion of the Advisor, subject to market conditions and investment considerations. There is no assurance that the Funds will purchase shares at any particular discount levels or in any particular amounts. Any repurchases made under these programs will be made on a national securities exchange at the prevailing market price, subject to exchange requirements and volume, timing and other limitations under federal securities laws. The Funds' repurchase activity will be disclosed in the annual and semi-annual reports to shareholders. The Boards will monitor on an ongoing basis the share repurchase programs and continue to consider a range of strategic options to enhance shareholder value in the long-term.
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Comment: See previous comments on GLO and GLQ for distribution "growth" in up markets. Read previous posts for history comments....
Live Long and Prosper....
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Post by xray on Jun 23, 2023 19:32:39 GMT
Chahta, yogibearbull, anitya, richardsok, chang, Some insider buying action (on the expected buying of undervalued securities): CEF .... Insider actions ............... .. NAV ....... MktPrc ... Current distribution% ... Comments
DPG... 6/20 6,000sh 9.82-10.08 ...11.04 ...... 9.60 ....... 8.69% (still overvalued) ............... Big distribution cut previously mentioned ... GLO ... 6/15 20,000sh 4.94 .......... 5.85 ...... 4.80 ........ 11.96%........................................... See previous comments postedGLQ... 6/20 20,000sh 6.20 .......... 7.29 ...... 6.01 ........ 11.87% .......................................... See Previous comments posted USA... 6/20 20,000sh 6.20 ........... 6.30 ...... 6.24 ........... 9.51% ........................................... Follows S&P and a good indicator on what the market is currently doing * all NAV/MktPrc data shown from early market numb3rs today Comment: GLO/GLQ is currently shown (by analysis ... single opinion) as continually undervalued by income oriented investors (currently @ substantial discount)with NAV's expected to increase (this current year)....
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Post by xray on Jun 29, 2023 18:47:19 GMT
Zacks Rithm Capital (RITM) Reveals Q2 Dividends: What We Think
Zacks Equity Research Mon, June 26, 2023, 10:56 AM EDT In this article:
RITM +0.37%
Rithm Capital Corp. RITM announced that its board has authorized second-quarter 2023 common as well as preferred stock dividends. The second-quarter dividend of 25 cents remained unchanged sequentially. In the first quarter, it paid $120.8 million in common dividends. The second quarter dividend will be paid on Jul 28, 2023, to stockholders of record as of Jul 3, 2023.
For the second quarter, RITM’s Board also declared Series A, Series B, Series C and Series D dividends per share of 46.9 cents, 44.5 cents, 39.8 cents and 43.8 cents, respectively. The dividends will be paid on Jul 17, 2023, to preferred stockholders.
The company continues to maintain a higher-than-industry dividend yield. Based on the closing price of $9.10 per share on Jun 23, the stock has a dividend yield of 11%, which is higher than the industry average of 2.4%.
Now the question arises if that dividend yield is sustainable and what to expect in the future.
Rithm Capital recently celebrated reaching the milestone of ten years as a publicly traded firm. During this time, its total assets jumped to around $32 billion from almost $3 billion. The company’s total equity also rose to around $7 billion from $1 billion. Starting from 2013, RITM paid dividends of $4.6 billion.
The mortgage market is significantly impacted by the high interest rate environment. Companies in this space are prone to getting affected by the underperformance of mortgage-backed securities. However, Rithm Capital’s diversified business model provides it with relief from the volatility witnessed in the mortgage business.
Also, the high interest rate environment is expected to benefit its mortgage servicing business. With high interest rates affecting refinancing activities, companies like RITM are likely to collect servicing fees for a longer period. This is likely to provide the company with steady cash flows, supporting its dividend payouts.
While the past year witnessed aggressive rate hikes, the intensity has slowed down and there’s a somewhat clear picture of where the Fed will go from here. The lower interest rate volatility will likely benefit Rithm Capital’s mortgage origination business. Also, it expects that the stress in the banking system will drive more assets to the marketplace, creating tremendous opportunities for companies like RITM to boost their portfolio. Thanks to these opportunities, its shareholder value-boosting efforts are expected to remain strong.
Zacks Rank
Rithm Capital currently has a Zacks Rank #3 (Hold).
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Comment: Computer analysis (since opinion) indicates a dividend rise is required this year....
Live Long and Prosper....
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Post by xray on Jul 12, 2023 15:44:36 GMT
PR Newswire Liberty All-Star® Equity Fund Declares Distribution PR Newswire Mon, Jul 10, 2023, 12:00 PM EDT2 min read
USA +0.45%
BOSTON, July 10, 2023 /PRNewswire/ -- The Board of Trustees of Liberty All-Star Equity Fund (NYSE: USA) has declared a distribution of $0.16 per share payable on September 5, 2023 to shareholders of record on July 21, 2023 (ex-dividend date of July 20, 2023). This distribution is in accordance with the Fund's current distribution policy of paying distributions on its shares totaling approximately 10 percent of its net asset value per year, payable in four quarterly installments of 2.5 percent. A portion of the distribution may be treated as paid from sources other than net income, including but not limited to short-term capital gain, long-term capital gain and return of capital. The final determination of the source of all distributions in 2023 for tax reporting purposes, including the percentage of qualified dividend income, will be made after year-end.
The distribution will be paid in newly issued shares to all shareholders except those who are not participating in Liberty All-Star Equity Fund's Dividend Reinvestment Plan and who elect to receive the distribution in cash. Shares will be issued at the lower of the August 18, 2023 net asset value per share or market value per share (but not less than 95% of market value). The market value of the Fund's shares for this purpose will be the last sales price on the New York Stock Exchange.
The Fund does not continuously issue shares and trades in the secondary market, investors wishing to buy or sell shares need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market's value. The Fund's shares are listed on the New York Stock Exchange under the ticker symbol USA. ALPS Advisors, Inc. is the investment advisor of the Fund, a multi-managed, closed-end investment company with more than $1.7 billion in net assets as of July 7, 2023.
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Live Long and Prosper....
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Post by xray on Jul 12, 2023 15:48:14 GMT
ACCESSWIRE Clough Global Opportunities Fund Declares Monthly Cash Distributions for July, August, and September 2023 of $0.0483 per Share Clough Global Opportunities Fund | GLO Mon, Jul 10, 2023, 9:30 AM EDT2 min read
GLO +1.60% DENVER, CO / ACCESSWIRE / July 10, 2023 / Today, the Board of Trustees (the "Board") for the Clough Global Opportunities Fund (the "Fund") has declared a monthly cash distribution of $0.0483 per common share, payable on the dates noted below. The Fund's managed distribution policy is to set the monthly distribution rate at an amount equal to one twelfth of 10% of the Fund's adjusted year-end net asset value per share ("NAV"), which will be the average of the NAVs as of the last five business days of the prior calendar year.
The following dates apply to the distributions declared:
-Ex-Date: July 20, 2023 Record Date: July 21, 2023 -Payable Date: July 31, 2023
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-Ex-Date: August 17, 2023 Record Date: August 18, 2023 -Payable Date: August 31, 2023
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-Ex-Date: September 21, 2023 Record Date: September 22, 2023 -Payable Date: September 29, 2023
A portion of the distribution may be treated as paid from sources other than net income, including but not limited to short-term capital gain, long-term capital gain and return of capital. The final determination of the source of all distributions, including the percentage of qualified dividend income, will be made after year-end.
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Live Long and Prosper....
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Post by xray on Jul 12, 2023 15:50:55 GMT
ACCESSWIRE Clough Global Equity Fund Declares Monthly Cash Distributions for July, August, and September 2023 of $0.0599 per Share Clough Global Equity Fund | GLQ Mon, Jul 10, 2023, 9:30 AM EDT2 min read
GLQ +1.28% DENVER, CO / ACCESSWIRE / July 10, 2023 / Today, the Board of Trustees (the "Board") for the Clough Global Equity Fund (the "Fund") has declared a monthly cash distribution of $0.0599 per common share, payable on the dates noted below. The Fund's managed distribution policy is to set the monthly distribution rate at an amount equal to one twelfth of 10% of the Fund's adjusted year-end net asset value per share ("NAV"), which will be the average of the NAVs as of the last five business days of the prior calendar year.
The following dates apply to the distributions declared:
-Ex-Date: July 20, 2023
Record Date: July 21, 2023
-Payable Date: July 31, 2023
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-Ex-Date: August 17, 2023
Record Date: August 18, 2023
-Payable Date: August 31, 2023
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-Ex-Date: September 21, 2023
Record Date: September 22, 2023
-Payable Date: September 29, 2023
A portion of the distribution may be treated as paid from sources other than net income, including but not limited to short-term capital gain, long-term capital gain and return of capital. The final determination of the source of all distributions, including the percentage of qualified dividend income, will be made after year-end.
Live Long and Prosper....
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Post by xray on Jul 12, 2023 16:01:59 GMT
Business Wire Virtus Stone Harbor Emerging Markets Total Income Fund Announces Distributions; Provides Update on Pending Merger
Business Wire Mon, Jul 10, 2023, 4:05 PM EDT3 min read
EDI +1.16% HARTFORD, Conn., July 10, 2023--(BUSINESS WIRE)--Virtus Stone Harbor Emerging Markets Total Income Fund (NYSE: EDI) today announced the following monthly distributions:
Amount of Distribution Ex-Date Record Date Payable Date
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$0.07 -July 19, 2023 July 20, 2023 -July 28, 2023
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$0.07 -August 10, 2023 August 11, 2023 -August 23, 2023
The amount of distributions reported in this notice are an estimate only and are not being provided for tax reporting purposes. The actual amounts and sources of the Fund’s distributions for tax purposes will depend on the Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund or your broker will send you a Form 1099-DIV for the calendar year that will tell you what distributions to report for federal income tax purposes.
The fund also announced that its proposed reorganization with and into Virtus Stone Harbor Emerging Markets Income Fund (NYSE: EDF), which was scheduled to occur on or about August 4, 2023 subject to certain closing conditions, will be delayed pending regulatory approval related to the transfer or sale of certain foreign assets. An update on the timing of the reorganization will be provided at a later date.
About the Fund
Virtus Stone Harbor Emerging Markets Total Income Fund is a non-diversified, closed-end management investment company that is managed by Stone Harbor Investment Partners. The Fund's primary investment objective is to maximize total return, which consists of income and capital appreciation on its investments in emerging markets securities. There is no assurance that the Fund will achieve its investment objective.
For more information on the Fund, contact shareholder services at (866) 270-7788, by email at closedendfunds@virtus.com, or through the Closed-End Funds section of virtus.com.
Fund Risks
An investment in a fund is subject to risk, including the risk of possible loss of principal. A fund’s shares may be worth less upon their sale than what an investor paid for them. Shares of closed-end funds may trade at a premium or discount to their net asset value. For more information about the Fund’s investment objective and risks, please see the Fund’s annual report. A copy of the Fund’s most recent annual report may be obtained free of charge by contacting "Shareholder Services" as set forth at the end of this press release.
About Stone Harbor
Stone Harbor Investment Partners is a global institutional fixed-income investment manager specializing in credit and asset allocation strategies. The firm manages institutional clients’ assets in a range of investment strategies including emerging markets debt, global high yield, bank loans, as well as multi-sector credit products including unconstrained and total return approaches. The firm’s investment strategies are based on fundamental insights, derived from a combination of proprietary research and the in-depth knowledge and specialized experience of the firm’s team. Founded in 2006, it is based in New York City with additional offices in London and Singapore. Stone Harbor Investment Partners is a division of Virtus Fixed Income Advisers, LLC, a registered investment adviser affiliated with Virtus Investment Partners.
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Live Long and Prosper....
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Post by xray on Jul 22, 2023 19:44:31 GMT
Business Wire Rithm Capital Corp. Acquired $1.4bn of Marcus Loans from Goldman Sachs Thu, July 20, 2023, 4:15 PM EDT In this article:
NEW YORK, July 20, 2023--(BUSINESS WIRE)--Rithm Capital Corp. (NYSE:RITM, "Rithm Capital" or the "Company"), an asset manager focused on the real estate and financial services industry, has announced the purchase of $1.4bn of prime unsecured consumer loans from The Goldman Sachs Group, Inc. (NYSE: GS or "Goldman Sachs"), a leading global financial institution. The portfolio was originated and serviced by Goldman Sachs through the Marcus program.
The pool represents a portion of the broader Marcus portfolio that was previously owned and held on balance sheet by Goldman Sachs. The pool is comprised of 100% fixed-rate closed-end installment loans in which ~95% of the pool was originated between 2021 Q4 and 2022 Q4 from the post-COVID demand boost. Acquiring these consumer loans allows for an opportunity for Rithm Capital to add discounted, short duration and high yielding prime credit consumer assets.
"This purchase is extremely attractive to us building off our past and current expertise in consumer finance," said Michael Nierenberg, Chairman, Chief Executive Officer and President of Rithm Capital. "Consistent with our investment approach, we continue to look for opportunities to grow shareholder value and believe this transaction will be an excellent addition."
ABOUT RITHM CAPITAL
Rithm Capital is an asset manager focused on the real estate and financial services industries. Rithm Capital’s investments in operating entities include leading origination and servicing platforms held through its wholly-owned subsidiaries, Newrez LLC, Caliber Home Loans Inc., and Genesis Capital LLC, as well as investments in affiliated businesses that provide residential and commercial real estate related services. The Company seeks to provide attractive risk-adjusted returns across interest rate environments. Since inception in 2013, Rithm Capital has delivered approximately $4.7 billion in dividends to shareholders. Rithm Capital is organized and conducts its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes and is headquartered in New York City.
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Comment: RITM, through analysis (sole opinion) continues to be a very good buy/hold for income oriented investors (through both up/down markets) for the stability of the MktPrc. Normal MktPrc is usually 9.00-10.00 range (with Book Value >10) and was considered a steal (IMHO) on 10/15 when the mkt crashed and fell as low as 7.54. Current data continues to indicate a possible increase in dividend by the end of year (especially should the above article posted pans out)....
Live Long and Prosper....
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Post by richardsok on Jul 23, 2023 0:51:22 GMT
Note: that's "prime UNsecured consumer debt" in a market with an inverse bond structure. I suppose it all depends what RITM paid for the debt and whether or not we have a recession ahead. All sorts of people are saying "no" but the bond mkt says "yes". One also wonders, if the debt is so valuable to service, why would GS want to unload it?
I took some gains on RITM back in June -- selling too soon, as usual, but I won't return to it now. The preferreds look pretty decent, though.
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Post by richardsok on Jul 23, 2023 10:59:15 GMT
Note: that's "prime UNsecured consumer debt" in a market with an inverse bond structure. I suppose it all depends what RITM paid for the debt and whether or not we have a recession ahead. All sorts of people are saying "no" but the bond mkt says "yes". One also wonders, if the debt is so valuable to service, why would GS want to unload it? I took some gains on RITM back in June -- selling too soon, as usual, but I won't return to it now. The preferreds look pretty decent, though. Follow-up: I'm reading a lot of people with student debts are shocked they will have to resume making payments in October. Evidently during the "pause" a lot of borrowers actually increased their debts with car loans and mortgages. WSJ suggests an increase in defaults could be ahead.
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Post by xray on Jul 23, 2023 22:02:17 GMT
richardsok, Your: Note: that's "prime UNsecured consumer debt" in a market with an inverse bond structure. I suppose it all depends what RITM paid for the debt and whether or not we have a recession ahead. All sorts of people are saying "no" but the bond mkt says "yes". One also wonders, if the debt is so valuable to service, why would GS want to unload it? I took some gains on RITM back in June -- selling too soon, as usual, but I won't return to it now. The preferreds look pretty decent, though. Follow-up: I'm reading a lot of people with student debts are shocked they will have to resume making payments in October. Evidently during the "pause" a lot of borrowers actually increased their debts with car loans and mortgages. WSJ suggests an increase in defaults could be ahead. ---------- 1... if the debt is so valuable to service, why would GS want to unload it? GS is in trouble. With that said.... Thu, July 20, 2023, 9:24 AM EDT July 20 (Reuters) - Goldman Sachs has brought back to its fold senior executive Tom Montag, adding him to its board as the Wall Street giant looks to regain lost ground after its ill-fated foray into consumer banking. Montag, who had previously co-headed Goldman's securities division and held other senior roles in his 22 years at the firm, will join the audit, governance and risk committees. Considered to be an ally of CEO David Solomon, Montag could bolster support for the chief executive, who is looking to undo the damage from the company's high-profile flop in retail banking. Solomon's plans to refocus Goldman to its mainstay businesses of investment banking, trading and asset management is already gaining traction with the board, two sources close to the CEO told Reuters. Montag left Goldman to join Merrill Lynch in 2008, which was then taken over by Bank of America during the throes of the financial crisis. He also served as BofA's chief operating officer and the president of its global banking and markets division before retiring at the end of 2021. Last year, he became CEO of Rubicon Carbon, a TPG-backed firm working on developing carbon markets. Goldman had on Wednesday reported its lowest quarterly profit in three years, hit by writedowns tied to its consumer businesses and real estate investments. "This moment in the economic cycle creates meaningful headwinds for Goldman Sachs... We are making tough decisions that are driving the strategic evolution of the firm," Solomon told analysts, warning that the bank was heading into "a period of lower results." 2... depends what RITM paid for the debt? Zacks Rithm Capital (RITM) Reveals Q2 Dividends: What We Think Rithm Capital Corp. RITM announced that its board has authorized second-quarter 2023 common as well as preferred stock dividends. The second-quarter dividend of 25 cents remained unchanged sequentially. In the first quarter, it paid $120.8 million in common dividends. The second quarter dividend will be paid on Jul 28, 2023, to stockholders of record as of Jul 3, 2023. For the second quarter, RITM’s Board also declared Series A, Series B, Series C and Series D dividends per share of 46.9 cents, 44.5 cents, 39.8 cents and 43.8 cents, respectively. The dividends will be paid on Jul 17, 2023, to preferred stockholders. The company continues to maintain a higher-than-industry dividend yield. Based on the closing price of $9.10 per share on Jun 23, the stock has a dividend yield of 11%, which is higher than the industry average of 2.4%.Now the question arises if that dividend yield is sustainable and what to expect in the future. Rithm Capital recently celebrated reaching the milestone of ten years as a publicly traded firm. During this time, its total assets jumped to around $32 billion from almost $3 billion. The company’s total equity also rose to around $7 billion from $1 billion. Starting from 2013, RITM paid dividends of $4.6 billion. The mortgage market is significantly impacted by the high interest rate environment. Companies in this space are prone to getting affected by the underperformance of mortgage-backed securities. However, Rithm Capital’s diversified business model provides it with relief from the volatility witnessed in the mortgage business. Also, the high interest rate environment is expected to benefit its mortgage servicing business. With high interest rates affecting refinancing activities, companies like RITM are likely to collect servicing fees for a longer period. This is likely to provide the company with steady cash flows, supporting its dividend payouts.While the past year witnessed aggressive rate hikes, the intensity has slowed down and there’s a somewhat clear picture of where the Fed will go from here. The lower interest rate volatility will likely benefit Rithm Capital’s mortgage origination business. Also, it expects that the stress in the banking system will drive more assets to the marketplace, creating tremendous opportunities for companies like RITM to boost their portfolio. Thanks to these opportunities, its shareholder value-boosting efforts are expected to remain strong.Zacks Rank Rithm Capital currently has a Zacks Rank #3 (Hold). ---- Comment: Poster is biased??? Unfortunately Yes. Have made the many necessary analysis of RITM (previous years known as NRZ) and has found RITM to be very stable in nature. Latest Insider buying was for 100,000sh at 7.94 (bargain price for those who follow insider buying activity). RITM, in my sole opinion, bought the GS at "Bargain Prices" and the next three years for both dividend increases and MktPrc should be very interesting (IMHO). Keep in mind that I am a dividend/distribution oriented type investor and when a investment gives me both dividend (>10%) and MktPrc increases over the years (looking forward), I find it appealing for inclusion in one's portfolio (2% increments to 6% maximum).... Live Long and Prosper....
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Post by xray on Jul 25, 2023 23:14:03 GMT
richardsok, Bloomberg Sculptor Deal Thrusts Obscure REIT Into Wall Street Spotlight Simone Foxman, Tanaz Meghjani and Carmen Arroyo Tue, July 25, 2023, 3:24 PM EDT (Bloomberg) -- Before last Thursday, Rithm Capital Corp. was a little-known real estate investment trust with a quirky name. But two eye-catching deals — first to buy a consumer-loan portfolio from Goldman Sachs Group Inc., then to acquire a hedge fund heavyweight — have thrust the company’s ambitions into Wall Street’s spotlight. On Monday, Rithm agreed to buy Sculptor Capital Management in a deal valued at $639 million after a public feud between the hedge fund firm’s founder and its chief executive officer prompted its board to explore strategic alternatives. The deal brings about 100 investment professionals and $34 billion in assets under Rithm’s umbrella. The Sculptor news came days after Rithm took on $1.4 billion of loans from Goldman as the Wall Street giant sheds consumer borrowings from its Marcus unit. Rithm, which manages about $32 billion of assets, holds an unassuming portfolio of consumer-facing real estate and lending companies and a pile of mortgage-serving rights. Rithm’s latest moves reflect its broader ambitions. “We started as a REIT, and now we’re going to try to morph into some kind of capital structure that looks like some of the largest money managers in the world,” founder Michael Nierenberg said in an interview, rattling off Wall Street giants such as Ares Management Corp., Apollo Global Management Inc. and Starwood Capital Group — all of which, he notes, have REITs. Read More: Blackstone’s $1 Trillion Mark Ushers In New Era of Buyout Titans Rithm emerged out of the ashes of the financial crisis. The firm began a decade ago as New Residential Investment Corp. and held mortgage-related assets accumulated by private equity giant Fortress Investment Group, which was betting on subprime lending and real estate after the 2008 financial crisis. Fortress hired Nierenberg to help manage the effort. Once co-head of US mortgage trading at Bear Stearns, he was running Bank of America Corp.’s global mortgage and securitized products business by 2013 — at the time, the largest underwriter of repackaged slices of US government-backed mortgage bonds. From its early days, even before Nierenberg’s tenure, the REIT dabbled outside of mortgages. In 2013, it co-invested in a $3.9 billion portfolio of consumer loans originated through HSBC Finance Corp. In 2017, the firm was part of a consortium that agreed to buy loans from financial services platform Prosper. But the firm’s ties to Fortress crimped its ambitions, especially to raise capital outside the stock market, Nierenberg said. New Residential re-branded to Rithm and paid the private equity firm $400 million to step aside last year. Bigger Ambitions Since then, Rithm’s ambitions have expanded beyond real estate into structured credit and direct lending — especially as banks face tightening regulations. “Once you’re labeled as a REIT or a mortgage company, you’re going to trade like a REIT or a mortgage company,” Nierenberg said. “So we’re trying to change that narrative a bit, and I think this acquisition should help us a ton.” Rithm’s 70-odd corporate staffers work out of an office near New York’s Union Square. As of Dec. 31, 5,800 were employed across its network of operating companies, which include mortgage lenders, a business lender, a single-family rental company and a commercial real estate investment firm. The firm hasn’t gotten enough credit for generating a more than 7% return over the past year and keeping a stable dividend while operating with less leverage than some other REITs, according to a recent note from BTIG analysts Eric Hagen and Jake Katsikas, who maintain a buy rating the stock. Whatever its ambitions, mortgages — and mortgage servicing — remain at the heart of Rithm’s business, according to Ben Elliott, an analyst for Bloomberg Intelligence. Mortgage servicing makes up 47% of Rithm’s investment portfolio. “They’ve purchased a minuscule asset manager, and they have a gigantic mortgage servicing portfolio, so fundamentally, the company is the same today as when this deal closes” in the fourth quarter, Elliott said. “This is for sure just a baby step.” Live Long and Prosper....
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Post by xray on Aug 3, 2023 19:47:20 GMT
Rithm Capital Corp. Announces Second Quarter 2023 Results Wed, August 2, 2023, 6:45 AM EDT
yahoo plus badge Rithm Capital Q2 Net Income USD 386.685 Million
NEW YORK, August 02, 2023--(BUSINESS WIRE)--Rithm Capital Corp. (NYSE: RITM; "Rithm Capital" or the "Company") today reported the following information for the second quarter ended June 30, 2023:
Second Quarter 2023 Financial Highlights:
-GAAP net income of $357.4 million, or $0.74 per diluted common share(1) -Earnings available for distribution of $297.9 million, or $0.62 per diluted common share(1)(2) -Common dividend of $120.8 million, or $0.25 per common share -Book value per common share of $12.16(1)
"Rithm had one of its best quarters ever," said Michael Nierenberg, Chairman, Chief Executive Officer and President of Rithm Capital. "We had near record earnings, grew book value, acquired $1.4 billion of consumer loans and grew our SFR business with the acquisition of 371 units. Subsequent to quarter end, we announced the acquisition of Sculptor Capital Management. This acquisition helps accelerate our growth in the alternative asset management space, as Sculptor’s $34 billion of AUM complements Rithm’s $7bn of permanent equity capital and $30+ billion balance sheet. With the introduction of new capital rules being instituted on banks and the highest level of rates seen in 20+ years, the investing environment has not been this good in years."
Second Quarter 2023 Company Highlights:
-Origination & Servicing (Mortgage Company) -Combined segment pre-tax income of $326.9 million(3) -Quarterly origination funded production volume of $9.9 billion -Estimated Q3’23 funded origination volume of approximately $8 to $10 billion
Total Rithm MSR Portfolio Summary
-MSR portfolio totaled $598 billion in unpaid principal balance ("UPB") at June 30, 2023 compared to $603 billion UPB at March 31, 2023(4) -Portfolio average CPR of approximately 6% -Servicer advance balances of $2.9 billion as of June 30, 2023, relatively flat compared to balances as of March 31, 2023
Mortgage Loans Receivable
Quarterly origination funded production volume of $905 million through Genesis Capital LLC
Consumer
In June 2023, invested $145 million to purchase interest in a $1.4 billion UPB prime unsecured consumer loan portfolio. The pool represents a portion of the broader Marcus portfolio that was previously owned and held on balance sheet by Goldman Sachs The pool is comprised of 100% fixed-rate closed-end installment loans, in which ~95% of the pool was originated between 2021 Q4 and 2022 Q4 from the post-COVID demand boost Acquiring these consumer loans allows for an opportunity to add discounted, short duration and high yielding prime credit consumer assets
Third Quarter 2023 Commentary(5)
-Rithm Capital is acquiring Sculptor Capital Management, Inc. (NYSE: SCU) and its operating subsidiaries (together, "Sculptor") -Alternative asset manager with ~$34bn under management as of July 1, 2023 -Strategies include opportunistic credit, institutional credit, real estate and multi-strategy -Transaction valued at $639 million(6), including $11.15 per Class A Share of Sculptor -Closing of acquisition targeted for Q4 2023, subject to customary closing conditions and approval
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Comment: For those income investors not aware of the dividend growth:
2019 ...... 0.05/Qtr 2020 ...... 0.10 to 0.20 2021 ..... insider grant awards ............. repurchase program 200.000,000sh ............. public offering 45,000,000sh/additional option 6,750,000sh finance acquisitions + .............. 0.20 2022 ..... 5/2022 book value 10.71 2022 ..... 0.25
We must keep in mind that as the "dividend" grows the return to shareholders, the "% dividend cost to yield" keeps changing to the upside. The CEF can't move much (bottom line wise) to the upside as the dividend keeps growing (as shareholder value continually increases) and many income investors (looking at charts) do not see the advantage of some of the CEF's. Downturns in MktPrc's have their place to take advantage of dividend paying CEF's IMHO...
Looking at the last four crash events of RITM (also previously known as NRZ), we can observe that the MktPrc has varied between 7.54-8.79. Appears that RITM is very stable in both up/down markets and they look for opportunities finance future acquisitions (again IMHO). Looking at this morning numb3rs, RITM is currently trading at 10.01....
Live Long and Prosper....
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