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Post by xray on Jan 6, 2021 19:48:03 GMT
We all are concerned with "RISK". Penny stocks are "EXTREMELY" risky because of the number of shares involved [normally 10x or more]. This is not for the faint in heart and who know nothing about the risk being taken. We all have "SINGLE OPINIONS" based on our individual analysis. Investors looking at this type of "SECTOR" inclusion, to be included into our normal portfolio's, must do a extensive analysis totally understand the risk. "RISK", in penny stocks, is tied to the numb3r of shares being held. A initial position in Penny Stocks should be 0-2% "ONLY" of one's portfolio [and tied to one's Goals and Objectives"]. Penny stocks do not normally do well in up markets where everything is up since not many investors are looking for a riskier investment with higher dividends. With that said....
Some of us have just bought today additional shares in our penny stock sector [based on Zack's BUY recommendation today confirming our earlier analysis]. Currently, some of us [with Goals & Objectives of 10% dividends and 5% CapGains = 15% total/Year minimum] have "5" penny stock investments mixed into our portfolio's. We have again had a very good year using Penny stocks as a addition to our portfolio....
I will be posting some penny stock analysis for review and comment in the future days [going forward]....
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Post by xray on Jan 22, 2021 16:57:21 GMT
"NOT A CEF" Penny Stock [<$10]....
I continue to have great hopes for USDP. All of my analysis numb3rs [looking forward] remain very positive. USDP has a great dividend and is in the "railroad" [oil] business. If/when oil comes back into favor , Oil will have to be moved to somewhere and they also have a new terminal opening up in the 2nd Qtr....
Looking at current math analysis numb3rs for USDP:
Analysis data [COB Friday], we currently have a report card grade of 57 [0-100 rating system] and increased to 7star "BUY SIGNAL" [0-10 star rating system], with a dividend [MktPrc @ 4.03] of 11.02%% with a "RISK" factor of +0.759 [must be >+1.335 for continual active buying for addt'l shares]. Good for income/CapGain investors IMHO....
.............PENNY STOCKS ARE NOT KNOWN TO BE SAFE SECURITIES IN ANY PORTFOLIO AND "BUYER BEWARE" IS CURRENTLY IN EFFECT. EXTENSIVE ANALYSIS AND RISK TOLERANCE IS A MUST BEFORE VENTURING INTO THE PENNY STOCK WORLD.......
Disclosure: Some of us currently have 2% [phase #0 position] of portfolio in USDP ....
COMMENT: Our current President Biden is attacking the "OIL" Sector and has stopped the pipe line and Arctic drilling which will increase the "RISK" on holding USDP and others in the Oil sector]....
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Post by Chahta on Jan 25, 2021 17:58:37 GMT
Have a friend I used to work with that trades a lot in penny stocks. He called me a few months ago and knew he was going to retire on one. It is IBIO. Looks like their vaccine crapped out.
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Post by yogibearbull on Jan 25, 2021 18:09:05 GMT
Vaccines are risky business. Even Merck has dropped its Covid-19 vaccine tests due to poor results.
I guess it was great luck that the 2 vaccines using never-used-before mRNA technology worked so well. Just remember what the news and markets would like without those.
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Post by xray on Jan 27, 2021 22:18:52 GMT
EDI [Global Equity & Fixed Income] confirms our dividend of $0.08 [$0.96/Yr] for Jan, Feb, and March.. Same as previous dividends announced ….
X-div: 2/11,3/12, and 4/16. Pay 2/25,3/25,4/29
DIVIDENDS remain a “IMPORTANT” [CRITICAL] factor if/when in the market for survival of down markets [LIMITS DOWNSIDE DROP]….
Down market currently but dividends will be continuing no matter what happens for next three months in the current market [IMHO]….
.............PENNY STOCKS ARE "NOT" SAFE SECURITIES IN ANY PORTFOLIO AND "BUYER BEWARE" IS ALWAYS IN EFFECT. EXTENSIVE ANALYSIS AND RISK TOLERANCE IS A MUST BEFORE VENTURING INTO THE PENNY STOCK WORLD.......
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Post by xray on Jan 28, 2021 22:29:14 GMT
USDP announces Qtrly dividend of $0.111/Qtr [$0.444/Yr] similar to last announcement....
x-div 2/8, pay 2/19
Live long and Prosper....
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Post by xray on Jan 29, 2021 17:39:23 GMT
USDP got a boost today from GuruFocus:
USD Partners LP
The first stock that meets the above criteria is USD Partners LP (NYSE:USDP), a Houston, Texas-based developer and operator of midstream infrastructures and provider of logistics solutions for producers of crude oil, biofuels and other energy-related products in North America.
The stock has an Altman Z-Score of 0.65, which indicates distress.The interest coverage ratio of 2.47 indicates that the company can continue paying its interest expenses for the time being.
GuruFocus has assigned a rating of 7 out of 10 to the company's profitability, driven by an operating margin of 18.81% (versus the industry median of 4.35%).
The share price ($5.01 as of Feb. 1) has declined sharply over the past year, as you can see in the below chart.
One analyst on Wall Street predicts it will bounce back strongly within a year, setting a buy recommendation and a price target of $13 per share for a 159.5% upside.
The market capitalization is $148.98 million, the 52-week range is $1 to $10.64 and the forward dividend yield is 8.86% (based on a quarterly cash dividend of 11.1 cents per share to be paid on Feb. 19)....
Disclosure: Some of us have a current position in USDP....
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Post by xray on Feb 7, 2021 14:44:10 GMT
Appears that there is little or no interest in "Penny Stocks" and therefore I will stop posting the better opportunities that I am coming across. I had hoped that some seasoned income investors [already in penny stocks] would have a inquiring interest. The last thing I wanted is for unseasoned investors to venture into a 'VERY HAZARDUS" sector of the market....
Live Long and Prosper....
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Post by anitya on Feb 7, 2021 21:26:51 GMT
Appears that there is little or no interest in "Penny Stocks" and therefore I will stop posting the better opportunities that I am coming across. I had hoped that some seasoned income investors [already in penny stocks] would have a inquiring interest. The last thing I wanted is for unseasoned investors to venture into a 'VERY HAZARDUS" sector of the market....
Live Long and Prosper.... Please post if you want to share or if you are asking for opinions but you have to write in easy to understand language if you care about wide participation. E.g., I am buying GE because it is a turnaround story with a new CEO who has experience in turning around troubled companies OR I see several board members buying GE what is that you guys see in this DOW dog OR I am thinking of buying GE because it is a diversified industrial companies and industrial sector is supposed to do well when the economy comes out of recession, what do you guys think? - just a few examples of what I can understand. Try and see why you can not get more people to participate in your posts.
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Post by yogibearbull on Feb 7, 2021 21:36:19 GMT
GE was removed from DJIA in 2018.
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Post by anitya on Feb 7, 2021 22:59:30 GMT
GE was removed from DJIA in 2018. Yes. Bought GE when it got kicked out of Dow (DIA) which I own in my taxable. Traded GE (and options) a few times since then and currently own 1,000 shares. BTW, most people consider DOW a passive index but I consider it an active index (if there is such a thing) and perhaps a bit strange for its price weighting. But sure it is active.
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Post by xray on Feb 18, 2021 16:44:09 GMT
Bought another block of shares in our dollar cost averaging yesterday.....
USDG comment on construction status and when it will be placed into service for additional revenue:
USDG, which owns the general partner of USD Partners LP, is engaged in designing, developing, owning, and managing large-scale multi-modal logistics centers and energy-related infrastructure across North America. USDG solutions create flexible market access for customers in significant growth areas and key demand centers, including Western Canada, the U.S. Gulf Coast and Mexico. Among other projects, USDG, along with its partner Gibson Energy, Inc., is pursuing long-term solutions to transport heavier grades of crude oil produced in Western Canada through the construction of a Diluent Recovery Unit at the Hardisty terminal, which is expected to be placed into service late in the second quarter or early in the third quarter of 2021. USDG is also currently pursuing the development of a premier energy logistics terminal on the Houston Ship Channel with capacity for substantial tank storage, multiple docks (including barge and deepwater), inbound and outbound pipeline connectivity, as well as a rail terminal with unit train capabilities.
Live Long and Prosper....
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Post by xray on Feb 19, 2021 19:38:55 GMT
For those holders of "TWO" [Penny stock holders]....
The president of "TWO" bought 230,000sh @ 6.58 bringing his holdings to 23% [in the last 24 hours]. No further change in our current penny stock holdings at this time....
Live Long and Prosper....
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Post by anitya on Feb 20, 2021 4:00:57 GMT
For those holders of "TWO" [Penny stock holders].... The president of "TWO" bought 230,000sh @ 6.58 bringing his holdings to 23% [in the last 24 hours]. No further change in our current penny stock holdings at this time.... Live Long and Prosper.... Xray, The President, who is also CEO, seems to have bought 34K (not 230K) shares valued at $230K. See link below. That replaces the 32K shares he sold on February 1. I do not know if he paid cash for the 34K shares or by exercise of stock options or vesting of other equity grants. In any case, neither his purchase nor his holdings is meaningful if the numbers at the link below are correct. His actual holdings and annual comp will be in SEC filings for those interested. I do not know why the stock moved 5% today and hope not because of similar to what you reported. I do not see any meaningful news since its Q4 earnings release on Feb 9. finance.yahoo.com/news/president-two-harbors-investment-corp-062506596.htmlfinance.yahoo.com/quote/TWO/insider-transactions?p=TWOA
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Post by xray on Feb 20, 2021 19:13:15 GMT
Oops .... Was reading the info too fast and will review their comments when I get the opportunity. Thanks. with that said....
Doesn't change anything for many of us as their last "Book Value" reported on 2/9 was 7.63 [up from 6.70 previously]. They raised their dividend to $0.68 [$0.17/Qtr x-div 12/28] from their 3rd Qtr's $0.56/Yr [$0.14/Qtr]. Considering their current mktPrc of 6.66 that a dividend of 10.21%....
Many of us spend too much time on detail and just skim announcements.....
Thanks again,
Live Long and Prosper....
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Post by xray on Feb 22, 2021 21:02:17 GMT
A check this morning on the insider buy on TWO was that the TWO President and CEO William Ross Greenberg bought 35,000 shares on Feb. 18 at a price of $6.58.....
Sorry about the confusion caused by me anitya [why speed reading can gets us into trouble sometimes]....
Keep in mind on the "buy/sell/buy" [etc] by insiders are for CapGain purposes [that we also do in owning some volatile securities]. When dealing with penny stocks the volatility can be very profitable [going forward]....
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Post by xray on Feb 23, 2021 23:20:39 GMT
Looking at how to invest in "PENNY STOCKS" if new at it....
There are three different ways to one can look at Penny Stocks": 1... IPO's [considered very dangerous since most add additional shares to survive and our shares will always decrease and become worthless if not following.... 2... Follow a opinion or comment on any message board.... 3... Follow and invest [after careful analysis] a security that has collapsed and expected to recover in the long run....
Some of us use #3 and initially invest 0-2% of our portfolio [after careful analysis] as a entry point. If/when the penny stock improves, we may go to 2-4% of portfolio. If falling in "love" we could make the final jump to 4-6% of current portfolio. Penny stocks are not something to watch once a month or longer as they can have news that will devalue the security. Weekly reviews are required. Having a good analysis methodology is the key on knowing when to buy and when to sell....
Disclosure: Some of us currently have seven penny stocks in our portfolio's....
Live Long and Prosper....
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Post by xray on Mar 9, 2021 20:19:17 GMT
Bought another block of shares in USDP in our dollar cost averaging yesterday..... USDP comment on construction status and when it will be placed into service for additional revenue: USDP, which owns the general partner of USD Partners LP, is engaged in designing, developing, owning, and managing large-scale multi-modal logistics centers and energy-related infrastructure across North America. USDP solutions create flexible market access for customers in significant growth areas and key demand centers, including Western Canada, the U.S. Gulf Coast and Mexico. Among other projects, USDP, along with its partner Gibson Energy, Inc., is pursuing long-term solutions to transport heavier grades of crude oil produced in Western Canada through the construction of a Diluent Recovery Unit at the Hardisty terminal, which is expected to be placed into service late in the second quarter or early in the third quarter of 2021. USDP is also currently pursuing the development of a premier energy logistics terminal on the Houston Ship Channel with capacity for substantial tank storage, multiple docks (including barge and deepwater), inbound and outbound pipeline connectivity, as well as a rail terminal with unit train capabilities. Live Long and Prosper....
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Post by xray on Mar 9, 2021 20:36:40 GMT
I don't know why but my posts appear to be changing from what I originally posted. With that said....
Currently, in penny stocks, some of us are currently following "USDP" [not USDG], "TWO", and "KYN"....
Keep in mind that if/when a penny stock goes below "9%' in dividend it is no longer considered a good buy and the Rf ["RISK"] goes up substantially since most of us are "income" driven. USDP is up $0.57 in intrinsic value for the last 2-wk period [COB Friday], TWO up $0.45, and KYN up +0.55....
EDI, EDF were sold because of current declining "Report Card" [math] grades [<65]....
Disclosure: Some of us continue to have positions in USDP, TWO, and KYN with current positive Report Card grades [72/9star, 90/10star, and 88/10star respectively]....
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Post by xray on Mar 21, 2021 16:43:03 GMT
Good Morning....
Looking at a update for our Penny Stocks <$10 [single opinion]:
Reference:
-Currently, in penny stocks, some of us are currently following "USDP" [not USDG], "TWO", and "KYN".... -Keep in mind that if/when a penny stock goes below "9%' in dividend it is no longer considered a "good" buy and the Rf ["RISK"] goes up substantially since most of us are "income" driven. USDP is up $0.57 in intrinsic value for the last 2-wk period [COB Friday], TWO up $0.45, and KYN up +0.55.... -EDI, EDF were sold because of current declining "Report Card" [math] grades [<65].... -Disclosure: Some of us continue to have positions in USDP, TWO, and KYN with current positive Report Card grades [72/9star, 90/10star, and 88/10star respectively]....
Here is the current "Math" analysis updates [COB Friday 3/21]:
USDP: -MktPrc: 5.59 -Current Star Rating: 9star -13wk Star Rating: 8.00 stars -Trend: +4.82 [>+0.98 required]
-YTT total analysis Scoring: +3.66 [>+1.39 required] -Total analysis score for last week: +321 [>+286 required] -Current Report Card Grade: 80 -Projected Report Card Grade [next week]: 90 -Current Power Rating: 91 [indicating Report Card grade will increase]
-Change in MktPrc last 2-wk period: +$0.39 -Chart Power Gain/Loss: +12.17 [>+12.20 required] -Change in Intrinsic Value: +$0.17
-Risk to current portfolio's: +0.402 [>+0.280 required] -Sell Code: 1 [1-2 indicates no risk, 3 indicates some risk, 4 neutral, 5 re-analyze, >6 starts reducing shares/sell out]
-Dividend: 7.94% -Next estimated Dividend announcement: 5/8 Market price increases causing current decline in dividend.... -Dividend sustainability: 452 [>+552 required]
-MTB: +1.03 [>1.01 required] -YTD increase: +1.95 [>+0.73 required] ----------------------------------- TWO: -MktPrc 7.52 -Current Star Rating: 7star -13wk Star Rating: 9.05 stars -Trend: +2.26 [>+0.98 required]
-YTT total analysis Scoring: +1.56 [>+1.39 required] -Total analysis scoring last week: +387 [>+286 required] -Current Report Card Grade: 90 -Projected Report Card Grade [next week]: 75 -Current Power Rating: 94 [indicating Report Card grade could go higher]
-Change in MktPrc last 2-wk period: +$0.25 -Chart Power Gain/Loss: +7.49 [>+12.20 required] -Change in Intrinsic Value: +$0.03
-Risk to current portfolio's: +0.396 [>+0.280 required] -Sell Code: 0 [1-2 indicates no risk, 3 indicates some risk, 4 neutral, 5 re-analyze, >6 starts reducing shares/sell out]
-Dividend: 9.04% -Next estimated Dividend announcement: "YESTERDAY" [+$0.17/Qtr = +$0.68/Yr] x-div 3/29, pay 4/29 Market price increases causing current decline in dividend.... -Dividend sustainability: 420 [>+552 required]
-MTB: +1.00 [>1.01 required] -YTD increase: +0.98 [>+0.73 required] ----------------------------------- KYN: -MktPrc: 7.30 -NAV: 8.26 -Current Star Rating: 7star -13wk Star Rating: 8.52 stars -Trend: +2.13 [>+0.98 required]
-YTT total analysis Scoring: +1.46 [>+1.39 required] -Total analysis scoring last week: +323 [>+286 required] -Current Report Card Grade: 85 -Projected Report Card Grade [next week]: 75 -Current Power Rating: 91 [indicating Report Card grade will increase]
-Change in MktPrc last 2-wk period: +$0.17 -Chart Power Gain/Loss: +8.41 [>+12.20 required] -Change in Intrinsic Value: -$0.15
-Risk to current portfolio's: +0.357 [>+0.280 required] -Sell Code: 0 [1-2 indicates no risk, 3 indicates some risk, 4 neutral, 5 re-analyze, >6 starts reducing shares/sell out]
-Dividend: 8.22% -Next estimated Dividend announcement: +$0.15/Qtr = +$0.60/Yr [x-div 3/22, pay 3-31] Market price increases causing current decline in dividend.... -Dividend sustainability: 648 [>+552 required]
-MTB: -0.98 [>+1.01 required] -YTD increase: +1.13 [>+0.73 required]
Live Long and Prosper....
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Post by richardsok on Mar 22, 2021 10:32:16 GMT
Thanks XRAY. I recently trimmed a piece of USDP off my IRA after a 45% run-up; my best 2021 performer, I think. Am very pleased with what I still hold, but have to remark it has just now returned to 5.50 resistance for the FOURTH time YTD.
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Post by xray on Mar 22, 2021 22:34:50 GMT
richardsok, I expect USDP to keep getting better [going forward]. USDP used to pay $0.37/Qtr [$1.48/Yr] vs $0.111/Qtr [$0.444/Yr] currently. When the new terminal opens it is my belief that the dividend will increase substantially and the MktPrc will again soar. Some of us have already taken substantial CapGain and we only have 50% of what we were currently holding. Waiting for a chance to buyback some of the shares sold. Believe, looking at the current numb3rs that this is a winner in any portfolio.... Live Long and Prosper....
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Post by chang on Mar 22, 2021 23:16:20 GMT
I find it hard to buy something that's up 63% YTD (less than 3 months). I'm glad I don't have your nerve in my tooth.
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Post by xray on Mar 23, 2021 22:49:45 GMT
chang, It is not nerve but using "numb3rs" [math]. Some of us [over "many" years now] have been using "math [vs traders with micro-second computers that we don't have] as our investment driver in both buying and selling.... Live Long and Prosper....
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Post by xray on Mar 25, 2021 21:09:10 GMT
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Post by richardsok on Mar 26, 2021 19:17:08 GMT
I also have been watching TWO, but dasn't touch it unless momentum solidifies. Shorter term charts, as you know, remain bearish.
On another topic you mentioned some while back; if no one responds to one of your posts, I hope you won't conclude no one is interested. I read everything you write and am sure others do too. Your approach is unique, disciplined, and devoid of sentiment. That makes it valuable.
No response from me doesn't mean no interest. It means I have nothing worthwhile to contribute.
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Post by xray on Mar 26, 2021 21:48:14 GMT
Thank You for your comments. As you noticed, I normally post "less" on message boards that appear to have little or no interest. Penny stocks are considered very dangerous in nature and thus I "LIMIT" many of my thoughts on them. With that said....
You might have taken notice of the "JUMP" in "USDP" today which continues to be undervalued IMHO [closed @ 6.46]. However, always, however's, the dividend remains <9% that I use [as a minimum return] and therefore is considered "non-investable" at the current time. Most of us who have invested in USDP have a current average cost MktPrc of 4.65 and a average MktPrc cost dividend of 9.55 % [after taking some CapGain and dollar cost averaging]. What I like about "Penny Stocks" is we "ALL" can own "MANY" more shares than the norm and CapGains can be excessive to what we cn normally expect if/when the MktPrc exceeds the norm that we normally expect....
Getting back to "TWO", many of us still use "phase" type investments. Phase #0 is 0-2% [of total portfolio is considered "NO RISK"] in a current portfolio. If a investor likes what they see through analysis and meets their goals and objectives, a phase "0" is normally taken. Many penny stocks do not move much until something happens that is considered very positive until something positive happens. TWO bought out CYS for pennies on the dollar some years back. Their current dividend [COB last Friday] was 9.04% with a MktPrc of 7.52 [book value was reported as 7.63 on 2/9]. Add to this that the President of TWO bought 34,000 shares at 6.58 on 2/18. TWO "appears" to be improving as we go forward. If/when TWO's dividend goes below 9%, all buying by many of us "stops" and it appears that we are at that point currently....
PLEASE KEEP IN MIND [TO ALL INVESTORS READING THIS] THAT "PENNY STOCKS" ARE NOT FOR EVERYONE AND THE "RISK" OF LOSING ALL OF YOUR TOTAL INVESTMENT IS ALWAYS CONSIDERED "BEYOND REASONABLE RISK"....
I will be busy this weekend with the "math" numb3rs to see what the market is doing [or not doing]. Currently I remain invested in all of my penny stocks CURRENTLY mentioned....
LIVE LONG AND PROSPER....
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Post by xray on Apr 4, 2021 19:01:17 GMT
Another penny stock that is doing better than anticipated in a questionable market [no longer considered a penny stock] is NRZ. NRZ used to pay $0.50/Qtr [$2.00/Yr] until the collapse last year. Many of us are doing quite well with NRZ in both dividends and CapGain currently [9.70% div currently based on "average MktBuyPrc cost price" after taking some good CapGain]. With that said....
NRZ is currently paying $0.20/Qtr [$0.80/Yr]. In June 2020, they announced a increase in their dividend to $0.10/Qtr. In September, they announced a increase to $0.15/Qtr. In December, they announced a further increase to $0.20/Qtr where it is currently....
NRZ has a current "Book Value" of 10.87 [currently over valued] and announced a repurchase of stock on 2/16 for 200mil. The last insider buying activity was in July of 2020 for 10,000 shares @ 7.72....
NRZ is one of those securities that trades all over the place and income investors can get a piece of it "if" in their "Watch List" [if/when NRZ meets one's goals & Objectives]....
NRZ: -MktPrc 11.21 -Current Star Rating: 10star -13wk Star Rating: 9.17 stars -Trend: +2.34 [>+0.84 required]
-YTT total analysis Scoring: +1.61 [>+0.70 required] -Total analysis scoring last week: +349 [>+277 required] -Current Report Card Grade: 92 -Projected Report Card Grade [next week]: 95 -Current Power Rating: 99 [indicating Report Card grade could go higher]
-Change in MktPrc last 2-wk period: +$0.16 -Chart Power Gain/Loss: +11.12 [>+12.34 required] -Change in Intrinsic Value: +$0.09
-Risk to current portfolio's: +0.426 [>+0.225 required] -Sell Code: 1 [1-2 indicates no risk, 3 indicates some risk, 4 neutral, 5 re-analyze, >6 starts reducing shares/sell out]
-Dividend: 7.14% -Next estimated Dividend announcement: 6/24 ... "Previous" [+$0.20/Qtr = +$0.80/Yr] x-div 4/3, pay 4/30 Market price increases causing major current decline in dividend.... -Dividend sustainability: 617 [>+551 required]
-MTB: -0.98 negative [>1.01 required] -YTD increase: +1.10 [>+0.75 required]
Disclosure: Some of us currently hold a 2%-4% position in NRZ at the current time. No selling activity is anticipated for the rest of the year.... Comment: Not a current buy at this time because of the R72 factor [IMHO]. Expect a dividend increase in either June or September....
Live Long and Prosper....
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Post by xray on Apr 20, 2021 15:57:11 GMT
NRZ [just above "Penny Stock" status ($10.00) back in the news today....
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From: simply Wall St
Those following along with New Residential Investment Corp. (NYSE:NRZ) will no doubt be intrigued by the recent purchase of shares by Michael Nierenberg, Chairman of the company, who spent a stonking US$1.0m on stock at an average price of US$10.10. While that only increased their holding size by 9.1%, it is still a big swing by our standards.
In fact, the recent purchase by Michael Nierenberg was the biggest purchase of New Residential Investment shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$10.34. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the New Residential Investment insiders decided to buy shares at close to current prices.
In the last twelve months New Residential Investment insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Insider Ownership of New Residential Investment
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.4% of New Residential Investment shares, worth about US$18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About New Residential Investment Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of New Residential Investment we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing New Residential Investment. At Simply Wall St, we've found that New Residential Investment has 4 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.
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Disclosure: Some of us continue to believe that NRZ will improve [MktPrc and Dividend] "Long Term" and continue [currently] to hold a Phase #1 position in NRZ [2% to 4%]. We do not expect to sell any of NRZ in the remaining 2nd Qtr but might increase our position [at any time]. Previous NRZ analysis is shown below. ...
Live Long and Prosper....
Previous posting on "CEF NEWS" [earlier post] 4/14:
2... NRZ is starting a Public Offering of 45,000,000sh "plus" underwriter additional option for 6,750,000sh. NRZ intends to use the proceeds for acquisition of Caliber house Loans + fee's and expenses associated with the purchase. Some of the additional money will be used for general Corporation purposes. If acquisition does not happen, money will go for general corp purposes. The purchase price for the acquisition is expected to be 1.675 billion in cash.... ... Looking at the current insider buying activity, we find that in January, there was 45,000 shares issued in "GRANT" awards. In February, there was three [3] indirect ownership statement [same individual] for the "record", and in March 324,000 shares were again issued as "GRANT" awards....
Disclosure: Some of us have a current phase #1 position [2%-4%] in NRZ [bought initially when it was a penny stock] and have no current intention of buying/selling additional shares of NRZ for the remainder of the 2nd Qtr....
Live Long and Prosper....
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Post by xray on Apr 22, 2021 15:29:52 GMT
NRZ Update by Brent Nyitray CFA:
Limits on Fannie and Freddie risk benefits New Residential The narrowing of Fannie Mae and Freddie Mac's credit box also benefits another REIT: New Residential Investment (NYSE:NRZ). Unlike most mortgage REITs, New Residential also has an operating company that originates mortgages. The change in policy will drive demand for New Residential's non-qualified mortgage (non-QM) business. New Residential will earn fees by originating the mortgage, which it will then hold on its balance sheet or securitize.
New Residential trades at a discount to book value, and the market has been assigning very little value to the origination arm. At current levels, New Residential pays a quarterly dividend of $0.20 which works out to be a dividend yield of 7.7%.
Live Long and Prosper....
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