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Post by xray on Jul 18, 2021 18:34:33 GMT
NRZ article defining [looking forward vs "RISK"]:
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Where Will New Residential Investment Be in 3 Years?
Jul 17, 2021 by Liz Brumer
New Residential Investment (NYSE: NRZ) is one of the larger mortgage real estate investment trusts (mREITs) in today's market. The company -- which specializes in originating and servicing residential mortgages and investing in agency and nonagency securities -- is growing quickly, putting this mREIT on a lot of investors' radars.
New Residential Investment today
The company earns revenues in a variety of ways, including loan originations through its mortgage subsidiary NewRez, servicing through its subsidiary Shellpoint, mortgage servicing rights (MSRs), and servicing advances. Additionally, the company buys and securitizes loans and other securities and sells them in the secondary market.
Calling, buying, and selling these loans and securities allows the company to recapitalize and leverage its portfolio to buy and originate more loans, thus helping it grow its portfolio and revenues.
As of Q1 2021, the company had $24.5 billion worth of assets in its portfolio and $304.6 billion worth of loans in its servicing portfolio, making it the largest non-bank owner of MSRs and a top 10 non-bank mortgage servicer. In the first quarter of 2021, the company originated $27.2 billion in loans, up 138% year over year (YOY).
The growth over the past few quarters has largely been driven by market conditions among residential real estate. High demand for housing backed by low interest rates has created a refinancing and buying frenzy.
These conditions have surely boosted the company's revenues and, in turn, helped offset some of the negative impacts from the COVID-19 pandemic, including New Residential's 60,350 borrowers among its servicing rights currently in forbearance and the 25% of its residential loan and securities portfolio that is delinquent. Despite this recent boost, core earnings per share as of Q1 2021 is still down 29% YOY.
In April 2021, New Residential raised $522 million in a common equity offering, which is being used in part to acquire Caliber Home Loans for an acquisition cost of $1.675 billion. This acquisition adds $141 billion in unpaid balances to New Residential's portfolio while adding new systems, software, and technology to its business model.
Where the company could be in three years
The latest acquisition and current market conditions should propel New Residential forward over the next few years, adding to its earnings per share and net revenues, particularly from its servicing rights and loan portfolio growth. The company predicts the acquisition alone will result in a 25%+ return on investment by 2022.
The biggest challenge the company faces within the next five years is the low-interest-rate environment and risk of increased defaults as forbearance plans begin to expire. A significant portion of the company's portfolio is in some stage of delinquency or forbearance.
Eventually, the company will need to rectify these delinquencies either through a loan sale or loss-mitigation efforts, which can be timely and costly. Its leverage ratio is 3.5x, so the company does carry notable debt in relation to its assets, making it something to keep an eye on over the next several quarters.
The company's share prices plummeted at the start of the pandemic, having yet to recover to pre-pandemic levels. General uncertainty over the long-term impacts of the mortgage and financial market has kept many investors on the sidelines until a clearer outcome can be determined. This means its -9.05% annualized return over the last three years is a far cry from the strong performance of the S&P 500 and most other REITs, despite pandemic-related concerns.
Right now, its book value is $11.35, while current share prices are below $10, meaning the company is trading below value. This is why the company has been repurchasing a great deal of its shares over the past year and will likely continue its buy-back program until trading values get closer to projected book values.
Given its growth prospects, I don't think it's unreasonable to see the company grow three times or more over the next five years, dividends included. Prior to the pandemic, the company achieved just over a 13% annualized return from 2017 to 2020.
While this could be a worthwhile growth stock for more risk-tolerant investors, it's important to remember the volatility that comes with buying into this REIT. Investors should only buy in knowing the risks and uncertainties that could unfold over the next three years.
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NRZ [COB Friday 7/16]:
-MktPrc 9.51
-Latest Insider Buying activity: 4/19/2021 100,000sh @ 10.10
-Current Star Rating: 7star
-13wk Star Rating: 8.17 stars
-Trend: +0.64 [>+1.52 required]
-Current Projection: 70 [Neutral]
-YTT total analysis Scoring: +0.64 [>+1.23 required]
-Total analysis scoring last week: +310 [>+283 required]
-Current Report Card Grade: 82
-Projected Report Card Grade [next week]: 88
-Current Power Rating: 99 [indicating Report Card grade could go higher]
-Change in MktPrc last 2-wk period: -0.77
-Chart Power Gain/Loss: +10.16 [>+13.52 required]
-Change in Intrinsic Value: +$1.19 [[>+0.05 required]
-Risk to current portfolio's: +0.181 [>+0.179 required]
-Sell Code: 2 [1-2 indicates no risk, 3 indicates some risk, 4 neutral, 5 re-analyze/wash sale, >6 starts reducing shares/sell out]
-Current Dividend: 8.32%
-Next estimated Dividend announcement: 9/17 ... "Previous" [+$0.20/Qtr = +$0.80/Yr] x-div 6/30, pay 7/30
-Dividend sustainability: 613 [>+580 required]
-MTB: -0.96 negative [>1.00 required]
-YTD increase: +1.24 [>+0.98 required]
Disclosure: Some of us continue to have a phase #4 [8%-10%] position in our portfolio's....
Live Long and Prosper....
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Post by xray on Jul 20, 2021 14:46:36 GMT
NRZ announcement this morning: ---------- New Residential Investment Corp. Schedules Second Quarter 2021 Earnings Release and Conference Call NEW YORK, July 19, 2021--(BUSINESS WIRE)--New Residential Investment Corp. (NYSE:NRZ, "New Residential" or the "Company") announced today that it will release its second quarter 2021 financial results for the period ended June 30, 2021 on Thursday, July 29, 2021 prior to the opening of the New York Stock Exchange. In addition, management will host a conference call on Thursday, July 29, 2021 at 8:00 A.M. Eastern Time. A copy of the earnings release will be posted to the Investor Relations section of New Residential’s website, www.newresi.com. All interested parties are welcome to participate on the live call. The conference call may be accessed by dialing 1-866-777-2509 (from within the U.S.) or 1-412-317-5413 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference "New Residential Second Quarter 2021 Earnings Call." In addition, participants are encouraged to pre-register for the conference call at dpregister.com/sreg/10158775/eb457ddacb. A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.newresi.com. Please allow extra time prior to the call to visit the website and download any necessary software required to listen to the internet broadcast. A telephonic replay of the conference call will also be available two hours following the call’s completion through 11:59 P.M. Eastern Time on Thursday, August 5, 2021 by dialing 1-877-344-7529 (from within the U.S.) or 1-412-317-0088 (from outside of the U.S.); please reference access code "10158775." ABOUT NEW RESIDENTIAL New Residential is a leading provider of capital and services to the mortgage and financial services industries with a proven track record of returns and performance. The Company’s mission is to generate attractive risk-adjusted returns in all interest rate environments through a portfolio of investments and operating businesses. New Residential has built a diversified, hard-to-replicate portfolio with high-quality investment strategies that have generated returns across different interest rate environments over time. New Residential’s portfolio is composed of mortgage servicing related assets (including investments in operating entities consisting of servicing, origination, and affiliated businesses), residential securities (and associated called rights) and loans, and consumer loans. New Residential’s investments in operating entities include its mortgage origination and servicing subsidiary, NewRez, and its special servicing division, Shellpoint Mortgage Servicing, as well as investments in affiliated businesses that provide services that are complementary to the origination and servicing businesses and other portfolios of mortgage related assets. Since inception in 2013, New Residential has a proven track record of performance, growing and protecting the value of its assets while generating attractive risk-adjusted returns and delivering over $3.7 billion in dividends to shareholders. New Residential is organized and conducts its operations to qualify as a real estate investment trust ("REIT") for federal income tax purposes. New Residential is managed by an affiliate of Fortress Investment Group LLC, a global investment management firm, and headquartered in New York City. ---------- Live Long and Prosper....
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Post by xray on Jul 22, 2021 21:41:14 GMT
USDP dividend announcement [2nd time]: Business Wire USD Partners Announces Quarterly Distribution Increase and its Second Quarter 2021 Earnings Release DateWed, July 21, 2021, 4:18 PM HOUSTON, July 21, 2021--(BUSINESS WIRE)--USD Partners LP (NYSE: USDP) (the "Partnership") announced today that the Board of Directors of its general partner declared a quarterly cash distribution of $0.116 per unit for the second quarter of 2021 ($0.464 per unit on an annualized basis), representing an increase of $0.0025 per unit, or 2.2% over the distribution declared for the first quarter of 2021. The distribution is payable on August 13, 2021, to unitholders of record at the close of business on August 4, 2021.Second Quarter 2021 Earnings Release Date and Conference Call Information The Partnership plans to report second quarter 2021 financial and operating results after market close on Wednesday, August 4, 2021. The Partnership will host a conference call and webcast regarding second quarter 2021 results at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) on Thursday, August 5, 2021. To listen live over the Internet, participants are advised to log on to the Partnership’s website at www.usdpartners.com and select the "Events & Presentations" sub-tab under the "Investors" tab. To join via telephone, participants may dial (877) 266-7551 domestically or +1 (339) 368-5209 internationally, conference ID 6061075. Participants are advised to dial in at least five minutes prior to the call. An audio replay of the conference call will be available for thirty days by dialing (800) 585-8367 domestically or +1 (404) 537-3406 internationally, conference ID 6061075. In addition, a replay of the audio webcast will be available by accessing the Partnership's website after the call is concluded. About USD Partners LP USD Partners LP is a fee-based, growth-oriented master limited partnership formed in 2014 by US Development Group, LLC ("USDG") to acquire, develop and operate midstream infrastructure and complementary logistics solutions for crude oil, biofuels and other energy-related products. The Partnership generates substantially all of its operating cash flows from multi-year, take-or-pay contracts with primarily investment grade customers, including major integrated oil companies, refiners and marketers. The Partnership’s principal assets include a network of crude oil terminals that facilitate the transportation of heavy crude oil from Western Canada to key demand centers across North America. The Partnership’s operations include railcar loading and unloading, storage and blending in on-site tanks, inbound and outbound pipeline connectivity, truck transloading, as well as other related logistics services. In addition, the Partnership provides customers with leased railcars and fleet services to facilitate the transportation of liquid hydrocarbons and biofuels by rail. Live Long and Prosper....
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Post by xray on Jul 29, 2021 18:02:10 GMT
NRZ 2nd Qtr results: New Residential Investment Corp. Announces Second Quarter 2021 Results Thu, July 29, 2021, 6:30 AM NEW YORK, July 29, 2021--(BUSINESS WIRE)--New Residential Investment Corp. (NYSE: NRZ; "New Residential" or the "Company") today reported the following information for the second quarter ended June 30, 2021: Second Quarter 2021 Financial Highlights:GAAP Net Income of $121.3 million, or $0.26 per diluted common share(1) $107.7 million Pre-Tax Income from Origination and Servicing(2) Core Earnings of $146.6 million, or $0.31 per diluted common share(1)(3) Common Dividend of $93.3 million, or $0.20 per common share(1) Book Value per common share of $11.27(1) $956.2 million of cash as of June 30, 2021 "Heading into the second half of 2021, we are very excited about the positioning of our company," said Michael Nierenberg, Chairman, Chief Executive Officer and President of New Residential. "The combined performance of our investment portfolio and operating business lines enabled us to deliver stable book value and good earnings during the quarter. Looking ahead, the focus of our investment business will continue to be on our core assets, including MSRs, call rights and loans. During the second quarter, we saw a slowdown in amortization in our MSR portfolio, which we believe will provide more cash flows and higher earnings as we go forward. We also expect our robust origination platform to more than offset amortization and create more MSRs. Our continued focus on driving higher recapture rates along with technology advancements should also help to create more earnings going forward." "In addition, we announced the agreement to acquire Caliber Home Loans, Inc. during the second quarter and, as previously announced, are on track to close that acquisition in the third quarter. We believe the combination of Newrez and Caliber will propel our operating strategy forward, adding incremental earnings, talent and asset creation opportunities to our platform. We look forward to the close of that transaction," added Mr. Nierenberg. Second Quarter 2021 Company Highlights: Corporate Highlights Announced agreement to acquire Caliber Home Loans Inc. ("Caliber"), a leading mortgage originator and servicer Raised $522.4 million of gross proceeds in a 51.7 million share common stock offering on April 19, 2021, which had an approximate ($0.03) impact on GAAP and Core EPS for the second quarter of 2021(4) Origination Segment pre-tax income of $75.4 million (down 61% QoQ and down 58% YoY)(2) Quarterly origination funded production of $23.5 billion in unpaid principal balance ("UPB") (down 14% QoQ and up 184% YoY) Total gain on sale margin of 1.31% for the second quarter of 2021 compared to 1.43% for the first quarter of 2021 Servicing Quarterly segment pre-tax net income of $32.3 million (up 2% QoQ and up 33% YoY)(2) Servicing portfolio grew to $305.9 billion in UPB (flat QoQ and up 10% YoY) Mortgage Servicing Rights ("MSRs") and Servicer Advances MSR portfolio totaled approximately $489 billion UPB as of June 30, 2021 compared to $515 billion UPB as of March 31, 2021(5) Servicer advance balances of $3.2 billion as of June 30, 2021, compared to $3.4 billion as of March 31, 2021 Issued one MSR debt securitization for $358 million Residential Securities and Call Rights Purchased $650 million (net face value) of agency securities Called non-agency collateral of $666 million UPB(6) Residential Loans Securitized $270 million (face value) of residential loans Bought $241 million of early buyout ("EBO") loans Grew single-family rental portfolio by approximately 600 units Financing and Leverage Overall leverage of 3.5x, unchanged from March 31, 2021(7) Leverage excluding agency securities of 1.1x, unchanged from March 31, 2021 Third Quarter 2021 Commentary(8) Estimated Newrez and Caliber Q3’21 Funded Origination Volume of approximately $40 billion to $45 billion UPB(9) Estimated Newrez and Caliber Q3’21 Servicing Portfolio UPB of approximately $465 billion to $475 billion UPB(9) Sold $5.4 billion (net face value) of agency securities(10) Sold $880 million (face value) of residential loans(10) Priced one MSR debt securitization for $418 million(10) (1) Per common share calculations for both GAAP Net Income and Core Earnings are based on 472,729,245 and 429,491,379 weighted average diluted shares during the quarter ended June 30, 2021 and March 31, 2021, respectively. Per share calculations of both Common Dividend and Book Value are based on 466,579,920 and 414,797,263 basic common shares outstanding as of June 30, 2021 and March 31, 2021, respectively. (2) Includes non-controlling interests. (3) Core Earnings is a non-GAAP financial measure. For a reconciliation of Core Earnings to GAAP Net Income, as well as an explanation of this measure, please refer to Non-GAAP Measures and Reconciliation to GAAP Net Income below. (4) Includes exercise of underwriters’ option to purchase additional shares of common stock (6,725,000 shares). (5) Includes excess and full MSRs. (6) Call rights UPB estimated as of June 30, 2021. The UPB of the loans relating to our call rights may be materially lower than the estimates in this release, and there can be no assurance that we will be able to execute on this pipeline of callable deals in the near term, on the timeline presented above, or at all, or that callable deals will be economically favorable. The economic returns from this strategy could be adversely affected by a rise in interest rates and are contingent on the level of delinquencies and outstanding advances in each transaction, fair market value of the related collateral and other economic factors and market conditions. We may become subject to claims and legal proceedings, including purported class-actions, in the ordinary course of our business, challenging our right to exercise these call rights and, as a result, we may not be able to exercise such rights on favorable terms or at all. Call rights are usually exercisable when current loan balances in a related portfolio are equal to, or lower than, 10% of their original balance. (7) Represents recourse leverage. Excludes non-recourse leverage, including outstanding consumer debt, servicer advance debt, SAFT 2013-1 and MDST Trusts mortgage backed securities issued, and Shellpoint non-agency RMBS. (8) Based on management’s current views and estimates, and actual results may vary materially. (9) Q3'21 estimates for combined Newrez and Caliber origination activity based upon estimated full quarter production volumes for the third quarter 2021. Q3’21 estimates for combined Newrez and Caliber servicing portfolio based on quarter-end (09/30/21) estimated portfolio size. Both estimates assume the close of the acquisition of Caliber in the third quarter of 2021. (10) Represents activity from July 1, 2021 through July 28, 2021. ADDITIONAL INFORMATION For additional information that management believes to be useful for investors, please refer to the latest presentation posted on the Investor Relations section of the Company’s website, www.newresi.com. For consolidated investment portfolio information, please refer to the Company’s most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K, which are available on the Company’s website, www.newresi.com. EARNINGS CONFERENCE CALL New Residential’s management will host a conference call on Thursday, July 29, 2021 at 8:00 A.M. Eastern Time. A copy of the earnings release will be posted to the Investor Relations section of New Residential’s website, www.newresi.com. All interested parties are welcome to participate on the live call. The conference call may be accessed by dialing 1-866-777-2509 (from within the U.S.) or 1-412-317-5413 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference "New Residential Second Quarter 2021 Earnings Call." In addition, participants are encouraged to pre-register for the conference call at dpregister.com/sreg/10158775/eb457ddacb. Live Long and Prosper....
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Post by xray on Jul 29, 2021 18:08:12 GMT
TWO news from "ZACK" ....
Zacks
Two Harbors Investments (TWO) Reports Next Week: Wall Street Expects Earnings Growth
Zacks Equity Research
Wed, July 28, 2021, 3:03 PM
Two Harbors Investments (TWO) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2021. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on August 4, 2021, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This real estate investment trust that invests in mortgage-backed securities is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of +480%.
Revenues are expected to be $30.86 million, down 31.7% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 11.27% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Two Harbors Investments?
For Two Harbors Investments, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #5.
So, this combination makes it difficult to conclusively predict that Two Harbors Investments will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Two Harbors Investments would post earnings of $0.21 per share when it actually produced earnings of $0.17, delivering a surprise of -19.05%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Two Harbors Investments doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Live Long and Prosper....
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Post by xray on Jul 29, 2021 18:13:49 GMT
NRZ Article today:
STOCKS DIVIDEND STOCKS
Top Dividend Stocks for August 2021
NLY, AGNC, NRZ, NYCB, and TFSL are top by forward dividend yield
By MATTHEW JOHNSTON Reviewed by JULIUS MANSA Updated Jul 29, 2021
Dividend stocks are companies that pay out a portion of their earnings to a class of shareholders on a regular basis. These companies usually are well established, with stable earnings and a long track record of distributing some of those earnings back to shareholders. The distributions are known as dividends and may be paid out in the form of cash or as additional stock. Most dividends are paid out on a quarterly basis, but some are paid out monthly, annually, or even once in the form of a special dividend. While dividend stocks are known for the regularity of their dividend payments, in difficult economic times, those dividends may be cut to preserve cash.
One useful measure for investors to gauge the sustainability of a company's dividend payments is the dividend payout ratio. The ratio is a measure of total dividends divided by net income, which tells investors how much of the company's net income is being returned to shareholders in the form of dividends versus how much the company is retaining to invest in further growth. If the ratio exceeds 100% or is negative (meaning net income is negative), this indicates the company may be borrowing to pay dividends. In these two cases, the dividends are at a relatively greater risk of being cut.
Below, we look at the top five dividend stocks in the Russell 1000 by forward dividend yield, excluding companies with payout ratios that are either negative or in excess of 100%. Only one of the stocks listed below, TFS Financial Corp. (TFSL), has outperformed the broader market, represented by the Russell 1000 Index. The Russell 1000 has provided a total return of 39.4% over the past 12 months.1 This market performance number and all statistics below are as of July 27, 2021.
Annaly Capital Management Inc. (NLY)
Forward dividend yield: 10.39%
Payout ratio: 31.5%
Price: $8.47
Market cap: $11.9 billion
1-year total return: 29.5%1
Annaly Capital Management is a diversified capital management company that invests in and finances residential and commercial assets. Its investments include agency mortgage-backed securities, residential and commercial real estate, and middle market lending. The company has about $93 billion in total assets.2
AGNC Investment Corp. (AGNC)
Forward dividend yield: 8.90%
Payout ratio: 33.2%
Price: $16.18
Market cap: $8.5 billion
1-year total return: 29.4%1
AGNC Investment is an internally-managed real estate investment trust (REIT) that primarily invests in agency residential mortgage-backed securities (RMBS) on a leveraged basis. It finances its holdings through collateralized borrowings structured as repurchase agreements (repos).3
New Residential Investment Corp. (NRZ)
Forward Dividend Yield: 8.47%
Payout Ratio: 56.1%
Price: $9.44
Market Cap: $4.4 billion
1-Year Total Return: 30.9%1
New Residential Investment is a mortgage REIT. It provides capital and services to the mortgage and financial services industries. The company invests in assets with stable, long-term cash flows. Its investment portfolio includes mortgage servicing-related assets, non-agency securities, residential loans, and other related investments.4
New York Community Bancorp Inc. (NYCB)
Forward dividend yield: 6.18%
Payout ratio: 62.6%
Price: $11.00
Market cap: $5.1 billion
1-year total return: 15.7%1
New York Community Bancorp is a holding company with multiple banking subsidiaries, including Queens County Savings Bank, Roosevelt Savings Bank, Atlantic Bank, and others. Through these subsidiaries, New York Community Bancorp offers a full range of banking products and services to businesses and consumers. The company serves customers in the New York City metropolitan area as well as New Jersey, Florida, Ohio, and Arizona.5 On April 26, New York Community Bancorp and Flagstar Bancorp Inc. (FBC) announced they had entered into a definitive agreement to do an all-stock merger. The implied total transaction value of the deal is $2.6 billion based on closing prices on April 23, 2021. The transaction is expected to close by the end of 2021.6
TFS Financial Corp. (TFSL)
Forward dividend yield: 5.76%
Payout ratio: 63.8%
Price: $19.45
Market cap: $5.5 billion
1-year total return: 49.6%1
TFS Financial is a federally chartered stock holding company that conducts its principal activities through its wholly owned subsidiaries. Its offers retail consumer banking services, including mortgage lending, deposit gathering, and other types of financial services. It had total consolidated assets of $14.6 billion as of Sept. 30, 2020.7
The comments, opinions, and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.
Live Long and Prosper....
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Post by richardsok on Jul 30, 2021 2:08:06 GMT
If I may, X, a question for you ---
None of my reporting websites ever cite the payout ratio. Is it something you are working out from the quarterly reports, or is there a readily available website that reports such numbers?
Thanks.
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Post by xray on Jul 30, 2021 16:51:58 GMT
Good Question....
I'll take a look into my computer system and find the source....
Live Long and Prosper....
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Post by xray on Jul 30, 2021 17:15:59 GMT
richardsok, Looking at my computer, it appears that it captures the information from articles being released by "Zacks", independent authors and the "selected" financial news [for my computer holdings] that I have the computer reporting on. The information used to be reported but has been dropped [don't know why it has been dropped since many of us consider this as important information and adds to our independent analysis].... You probably created the question from the independent article above [see above earlier message] from one of the independent author's article on NRZ.... Live Long and Prosper....
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Post by richardsok on Jul 31, 2021 1:48:21 GMT
richardsok , Looking at my computer, it appears that it captures the information from articles being released by "Zacks", independent authors and the "selected" financial news [for my computer holdings] that I have the computer reporting on. The information used to be reported but has been dropped [don't know why it has been dropped since many of us consider this as important information and adds to our independent analysis].... You probably created the question from the independent article above [see above earlier message] from one of the independent author's article on NRZ.... Live Long and Prosper.... X -- To follow up briefly, I did some nosing around and I found on finviz.com, you can punch up any stock symbol and among all the data they give, they list something called "DIVIDEND PAYOUT RATIO" or "PAYOUT", which I'm guessing may be the same thing, or quite close. For NLY they report 29.3% --- pretty close to the 31% you report. |
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Post by xray on Aug 2, 2021 15:46:38 GMT
richardsok, Your: To follow up briefly, I did some nosing around and I found on finviz.com, you can punch up any stock symbol and among all the data they give, they list something called "DIVIDEND PAYOUT RATIO" or "PAYOUT", which I'm guessing may be the same thing, or quite close. For NLY they report 29.3% --- pretty close to the 31% you report. ---------- The difference could be the change in MktPrc which can fluctuate considerably [like the daily dividend]. I will give finviz a visit.... Update on NRZ [COB Friday]: NRZ remains Neutral [5star] with a 73 Report Card grading and a 80 power rating. Best entry BuyPrc is currently 9.60. With the insider buy @ 10.10 for 100,000sh [on 4/19/21] NRZ is shown to still be very undervalued [current discount to mktPrc @ -1.17 (considerable to my way of thinking]. Add to this, NRZ just reported their new book value as 11.27 on 7/29/21.... Disclosure: Some of us remain "overweight" in NRZ and expect a dividend increase in the 4th Qtr.... Live Long and Prosper....
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Post by richardsok on Aug 2, 2021 18:45:38 GMT
They appear to have EPS for some CEFs (not all) but no payout coverage numbers.
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Post by xray on Aug 3, 2021 20:31:40 GMT
NRZ article:
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What Kind Of Investors Own Most Of New Residential Investment Corp. (NYSE:NRZ)?
Simply Wall St
Mon, August 2, 2021, 7:37 AM
The big shareholder groups in New Residential Investment Corp. (NYSE:NRZ) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that have been privatized tend to have low insider ownership.
New Residential Investment is a pretty big company. It has a market capitalization of US$4.6b. Normally institutions would own a significant portion of a company this size. In the chart below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about New Residential Investment.
What Does The Institutional Ownership Tell Us About New Residential Investment?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that New Residential Investment 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of New Residential Investment, (below). Of course, keep in mind that there are other factors to consider, too.
New Residential Investment is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is The Vanguard Group, Inc. with 7.9% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.1% and 3.0% of the stock.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
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 New Residential Investment
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 most recent data indicates that insiders own less than 1% of New Residential Investment Corp.. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own US$19m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public holds a substantial 57% stake in New Residential Investment, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that New Residential Investment is showing 3 warning signs in our investment analysis , and 1 of those is a bit unpleasant...
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Live Long and Prosper....
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Post by xray on Aug 3, 2021 20:55:00 GMT
richardsok, Found finviz.com interesting and can be used as another "reference" source. The only problem I encountered was that my computer [math] analysis is different and the graphs don't match. Probably because of my "Goals & Objectives" requirements that are influencing my final data output.... Thanks for the input.... Live Long and Prosper....
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Post by xray on Aug 4, 2021 18:34:36 GMT
WMC reports a "DOWN" Qtr....
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Western Asset Mortgage Capital Corporation Announces Second Quarter 2021 Results
Tue, August 3, 2021, 5:19 PM
Conference Call and Webcast Scheduled for Tomorrow, Wednesday, August 4, 2021 at 11:00 a.m. Eastern Time/8:00 a.m. Pacific Time
PASADENA, Calif., August 03, 2021--(BUSINESS WIRE)--Western Asset Mortgage Capital Corporation (the "Company" or "WMC") (NYSE: WMC) today reported its results for the second quarter ended June 30, 2021.
SECOND QUARTER 2021 FINANCIAL RESULTS
During the second quarter we continued strengthening our balance sheet by favorably amending two key financing facilities, and improving liquidity. Second quarter financial results included the following:
GAAP book value per share was $3.55 at June 30, 2021.
Economic book value(2) per share of $3.28 at June 30, 2021.
GAAP net loss of $40.2 million, or a net loss of $0.66 per basic and diluted share.
Included in GAAP net loss is an unrealized loss of $48.7 million related to the decline in fair value of a $90 million non-performing commercial mezzanine loan.
Distributable Earnings(1) of $2.8 million, or $0.05 per basic and diluted share.
Economic return on GAAP book value(3) was negative 15.5% for the quarter.
1.51% annualized net interest margin (1)(4)(5) on our investment portfolio.
Recourse leverage was 2.5x at June 30, 2021.
On June 22, 2021, we declared a second quarter common dividend of $0.06 per share.
BUSINESS UPDATE
In May 2021, we amended our Non-Agency CMBS and Non-Agency RMBS financing facility to, among other things, extend the facility for an additional 12 months and reduce the interest rate. The amended facility bears interest at a rate of three-month LIBOR plus 2.00%.
In May 2021, we amended our Commercial Whole Loan Facility to, among other things, convert the term to a 12-month facility with up to a 12-month extension option, subject to the lender's consent.
On July 29, 2020, the Company appointed Greg Handler as Chief Investment Officer of the Company and Sean Johnson as Deputy Chief Investment Officer of the Company. Mr. Handler was previously the Company's Interim Co-Chief Investment Officer and is the Head of the Mortgage and Consumer Credit team at Western Asset Management Company, LLC, the Company’s external manager (the "Manager"). Mr. Johnson was previously the Company's Interim Co-Chief Investment Officer and is a Portfolio Manager on the Mortgage and Consumer Credit team at our Manager.
In the second quarter of 2021, the non – GAAP financial measure of Core Earnings was renamed Distributable Earnings. Refer to page 14 of this press release for a reconciliation of GAAP Net Income (Loss) to Non-GAAP Distributable Earnings.
Economic book value is a non-GAAP financial measure. Refer to page 16 of this press release for the reconciliation of GAAP book value to non-GAAP economic book value.
Economic return is calculated by taking the sum of: (i) the total dividends declared; and (ii) the change in book value during the period and dividing by the beginning book value.
Includes interest-only securities accounted for as derivatives.
Excludes the consolidation of VIE trusts required under GAAP.
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Disclosure: No change in this penny stock holding for the remainder of 2021....
Live Long and Prosper....
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Post by xray on Aug 5, 2021 17:53:19 GMT
USDP reports 2nd Qtr results: ---------- Wed, August 4, 2021, 4:20 PM HOUSTON, August 04, 2021--(BUSINESS WIRE)--USD Partners LP (NYSE: USDP) (the "Partnership") announced today its operating and financial results for the three and six months ended June 30, 2021. Financial highlights with respect to the second quarter of 2021 include the following: Generated Net Cash Provided by Operating Activities of $14.1 million, Adjusted EBITDA(1) of $16.3 million and Distributable Cash Flow(1) of $14.4 million Reported Net Income of $6.7 million Increased quarterly cash distribution to $0.116 per unit ($0.464 per unit on an annualized basis) with over 4.0x Distributable Cash Flow Coverage(2)Announced West Colton Renewable Diesel project and new terminalling services agreement that once operational is expected to generate approximately $2.0 million per year of Adjusted EBITDA(3) over the five-year term of the agreement for the Partnership."We are pleased to report another strong quarter in 2021," said Dan Borgen, the Partnership’s Chief Executive Officer. "Our terminals performed well during the second quarter, and we are very excited to report that construction of our Sponsor’s Diluent Recovery Unit project, or DRU, was completed in July. The DRU is now in the start-up phase, and our Sponsor expects the facility to be placed into service during the third quarter. In addition, construction of all major items at our Sponsor’s destination facility at Port Arthur necessary to receive DRUbit™ by rail, and blend and ship product by pipe, is complete and start-up of the new terminal has begun. As mentioned previously, our DRUbit™ by Rail™ network provides the Partnership with long-term take-or-pay revenues while providing transportation safety and environmental benefits to our customers, as well as providing increased market access and additional jobs along the rail routes.""We continue to be very excited about our future as well as the future of our Sponsor’s new DRU and Port Arthur Terminal as we engage with our customers regarding the second phase of USD’s growth, which could include a second DRU customer committing to delivering the next 50,000 barrels per day of diluted bitumen into the DRU, with the resulting DRUbitTM available to be transloaded through the Partnership’s Hardisty rail terminal to the Gulf Coast and other potential destinations," added Mr. Borgen. "We look forward to keeping our investors updated with future announcements regarding the DRU." Partnership’s Second Quarter 2021 Liquidity, Operational and Financial Results Substantially all of the Partnership’s cash flows are generated from multi-year, take-or-pay terminalling services agreements related to its crude oil terminals, which include minimum monthly commitment fees. The Partnership’s customers include major integrated oil companies, refiners and marketers, the majority of which are investment-grade rated. The Partnership’s operating results for the second quarter of 2021 relative to the same quarter in 2020 were primarily influenced by higher revenue at its Stroud terminal during the quarter due to higher rates that are based on crude oil index pricing differentials. Also during the quarter the Partnership recognized revenue that was previously deferred at the Stroud terminal during the first quarter of 2021 associated with the make-up right options that are granted to the Partnership’s customers. Additionally, revenue at the Hardisty terminal in the second quarter of 2021 relative to the second quarter of 2020, was higher due to a favorable variance resulting from the change in the Canadian exchange rate associated with the Partnership’s Canadian-dollar denominated contracts and increased rates on certain of the Partnership’s Hardisty agreements.The Partnership experienced higher operating costs during the second quarter of 2021 as compared to the second quarter of 2020. This increase was primarily attributable to an increase in subcontracted rail services costs and pipeline fees associated with higher throughput, partially offset by lower selling, general and administrative costs. Net income increased in the second quarter of 2021 as compared to the second quarter of 2020, primarily because of the operating factors discussed above coupled with lower interest expense incurred during the 2021 period resulting from lower interest rates and a lower weighted average balance of debt outstanding. The Partnership also recognized a small non-cash foreign currency transaction gain in the second quarter of 2021 as compared to a non-cash loss recognized in the 2020 comparative period. Partially offsetting was a higher non-cash loss associated with the Partnership’s interest rate derivatives during the second quarter of 2021 when compared to the same period in 2020. Net Cash Provided by Operating Activities for the quarter increased 160% relative to the second quarter of 2020, primarily due to the operating factors discussed above and the general timing of receipts and payments of accounts receivable, accounts payable and deferred revenue balances. Adjusted EBITDA and Distributable Cash Flow ("DCF") increased by 28% and 48%, respectively, for the quarter relative to the second quarter of 2020. The increase in Adjusted EBITDA was primarily a result of the operating factors discussed above. DCF was also positively impacted by a decrease in cash paid for interest during the quarter, partially offset by an increase in cash paid for income taxes and higher maintenance capital expenditures incurred during the current quarter, which included technology upgrades and safety maintenance at the Partnership’s Hardisty and Stroud terminals. As of June 30, 2021, the Partnership had approximately $3 million of unrestricted cash and cash equivalents and undrawn borrowing capacity of $206 million on its $385 million senior secured credit facility, subject to the Partnership’s continued compliance with financial covenants. As of the end of the second quarter of 2021, the Partnership had borrowings of $179 million outstanding under the revolving credit facility. Pursuant to the terms of the Partnership’s Credit Agreement, the Partnership’s borrowing capacity is currently limited to 4.5 times its trailing 12-month consolidated EBITDA, as defined in the Credit Agreement. As such, the Partnership’s available borrowings under the senior secured credit facility, including unrestricted cash and cash equivalents, was approximately $100 million as of June 30, 2021. The Partnership was in compliance with its financial covenants, as of June 30, 2021. On July 21, 2021, the Partnership declared a quarterly cash distribution of $0.116 per unit ($0.464 per unit on an annualized basis), representing an increase of $0.0025 per unit, or 2.2% over the distribution declared for the first quarter of 2021. The distribution is payable on August 13, 2021, to unitholders of record at the close of business on August 4, 2021.Since the end of the first quarter of 2020, the Partnership has reduced the outstanding balance of its revolving credit facility by $45 million as of June 30, 2021. Second Quarter 2021 Conference Call Information The Partnership will host a conference call and webcast regarding second quarter 2021 results at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) on Thursday, August 5, 2021. To listen live over the Internet, participants are advised to log on to the Partnership’s website at www.usdpartners.com and select the "Events & Presentations" sub-tab under the "Investors" tab. To join via telephone, participants may dial (877) 266-7551 domestically or +1 (339) 368-5209 internationally, conference ID 6061075. Participants are advised to dial in at least five minutes prior to the call. An audio replay of the conference call will be available for thirty days by dialing (800) 585-8367 domestically or +1 (404) 537-3406 internationally, conference ID 6061075. In addition, a replay of the audio webcast will be available by accessing the Partnership's website after the call is concluded. ---------- Disclosure: We will remain "OVERWEIGHT" [>6%] in USDP for the remainder of the 3rd Qtr.... Live Long and Prosper....
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Post by xray on Aug 5, 2021 18:03:34 GMT
TWO reports 2nd Qtr results: ---------- Two Harbors Investment Corp. Reports Second Quarter 2021 Financial Results Wed, August 4, 2021, 4:30 PM NEW YORK, August 04, 2021--(BUSINESS WIRE)--Two Harbors Investment Corp. (NYSE: TWO), an Agency + MSR mortgage real estate investment trust (REIT), today announced its financial results for the quarter ended June 30, 2021. Quarterly SummaryReported book value of $6.42 per common share, representing a (9.6)% quarterly return on book value(1)Generated Comprehensive Loss of $194.6 million, representing an annualized return on average common equity of (40.7)% Reported Core Earnings of $51.5 million, or $0.19 per weighted average basic common share(2) Declared a second quarter common stock dividend of $0.17 per shareContinued to grow mortgage servicing rights (MSR) portfolioSettled $16.4 billion unpaid principal balance (UPB) generated through flow-sale program Closed on $6.5 billion UPB through bulk transactions Post Quarter End Update Issued 40 million shares of common stock through an underwritten offering for net proceeds of approximately $256.5 millionExpect to settle on outstanding commitments of $17.5 billion UPB of MSR through bulk transactions "The second quarter saw significant spread widening in high coupon RMBS, which impacted the performance of our portfolio," stated Bill Greenberg, Two Harbors’ President, Chief Executive Officer and Chief Investment Officer. "While the investing environment in RMBS was challenging, our MSR portfolio has continued to deliver attractive returns. Our recent capital issuance together with our available cash positions the company to deploy capital in MSR, and in RMBS when spreads normalize."(1) Return on book value is defined as the increase (decrease) in book value per common share from the beginning to the end of the given period, plus dividends declared in the period, divided by book value as of the beginning of the period. (2) Core Earnings is a non-GAAP measure. Please see page 11 for a definition of Core Earnings and a reconciliation of GAAP to non-GAAP financial information. Operating Performance Conference CallTwo Harbors Investment Corp. will host a conference call on August 5, 2021 at 9:00 a.m. EDT to discuss second quarter 2021 financial results and related information. To participate in the teleconference, please call toll-free (877) 502-7185, approximately 10 minutes prior to the above start time. You may also listen to the teleconference live via the Internet on the company’s website at www.twoharborsinvestment.com in the Investors section under the Events and Presentations link. For those unable to attend, a telephone playback will be available beginning at 12:00 p.m. EDT on August 5, 2021, through 12:00 p.m. EDT on August 19, 2021. The playback can be accessed by calling (877) 660-6853, conference code 13721255. The call will also be archived on the company’s website in the Investors section under the Events and Presentations link. Disclosure: We will remain "OVERWEIGHT" [>6%] in TWO for the remainder of the 3rd Qtr.... Live Long and Prosper....
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Post by xray on Aug 16, 2021 21:21:36 GMT
USDP release today:
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USD Partners Announces Increased Connectivity at Its Stroud Terminal at the Cushing Hub
Mon, August 16, 2021, 4:21 PM
HOUSTON, August 16, 2021--(BUSINESS WIRE)--USD Partners LP (NYSE:USDP) (the "Partnership") announced today an expansion of the downstream connectivity at its Stroud terminal. The expansion is being pursued by an affiliate of US Development Group, LLC pursuant to its development rights at the terminal, and when completed will add a pipeline connection to a second 300,000 barrel storage tank at a third party facility at the Cushing, Oklahoma, crude oil hub (the "Cushing Hub"). The expanded connectivity is expected to facilitate incremental rail-to-pipeline shipments of crude oil to the Cushing Hub by giving the terminal better capability to service multiple customers and/or multiple grades of crude oil simultaneously. The expansion is expected to be completed in the first quarter of 2022.
"We are excited about the enhanced connectivity at the Stroud terminal that this additional connection into the Cushing Hub creates," said Jim Albertson, Senior Vice President, Commercial Development – Canada. "This expansion facilitates greater market access and enhances the Stroud terminal’s ability to increase its customer base and fee generating commitments."
The Stroud terminal is located on 76-acres with the ability to unload one unit train per day and includes two 70,000 barrel onsite operational storage tanks and one truck bay. Additionally, the terminal is connected to the Cushing Hub by a 12-inch diameter, 17-mile pipeline today.
"As the only unit train facility connected by pipeline to the Cushing Hub, this additional connectivity enhances the strategic value and competitive advantages of our Stroud destination terminal as a rail-to-pipeline solution for our customers," said Brad Sanders, Executive Vice President and Chief Commercial Officer for USD.
About USD Partners LP
USD Partners LP is a fee-based, growth-oriented master limited partnership formed in 2014 by US Development Group, LLC ("USD") to acquire, develop and operate midstream infrastructure and complementary logistics solutions for crude oil, biofuels and other energy-related products. The Partnership generates substantially all of its operating cash flows from multi-year, take-or-pay contracts with primarily investment grade customers, including major integrated oil companies, refiners and marketers. The Partnership’s principal assets include a network of crude oil terminals that facilitate the transportation of heavy crude oil from Western Canada to key demand centers across North America. The Partnership’s operations include railcar loading and unloading, storage and blending in on-site tanks, inbound and outbound pipeline connectivity, truck transloading, as well as other related logistics services. In addition, the Partnership provides customers with leased railcars and fleet services to facilitate the transportation of liquid hydrocarbons and biofuels by rail.
USD, 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. USD 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. 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. For additional information, please visit texasdeepwater.com. Information on websites referenced in this release is not part of this release.
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Disclosure: Some of us continue to hold a phase #4 position [8%-10%] of USDP in current portfolio....
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Post by xray on Aug 20, 2021 15:40:03 GMT
TWO News:
Best Dividend Stocks with Over 5% Yield According to Hedge Funds
Fatima Farooq
Fri, August 20, 2021, 10:50 AM
9. Two Harbors Investment Corp. (NYSE: TWO)
Number of Hedge Fund Holders: 30 Dividend Yield: 10.6%
Two Harbors Investment Corp. (NYSE: TWO), a real estate investment trust, ranks 9th on our list of the best dividend stocks with over 5% yield according to hedge funds. The company invests in, finances, and manages residential mortgage-backed securities (RMBS), non-agency securities, mortgage servicing rights, and other financial assets.
As of this June, Credit Suisse analyst Douglas Harter holds a Neutral rating on shares of Two Harbors Investment Corp. (NYSE: TWO), alongside a $7.50 price target.
In the second quarter of 2021, Two Harbors Investment Corp. (NYSE: TWO) had an FFO of $0.19, in line with estimates. The company's revenue was $19.04 million, missing estimates by $24.47 million. Two Harbors Investment Corp. (NYSE: TWO) has gained 3.72% year to date and 13.65% in the past year.
By the end of the second quarter of 2021, 30 hedge funds out of the 873 tracked by Insider Monkey held stakes in Two Harbors Investment Corp. (NYSE: TWO) worth roughly $160 million. This is compared to 32 hedge funds in the previous quarter with a total stake value of approximately $200 million.
Like Altria Group, Inc. (NYSE: MO), Exxon Mobil Corporation (NYSE: XOM), McDonald's Corporation (NYSE: MCD), and The Coca-Cola Company (NYSE: KO), Two Harbors Investment Corp. (NYSE: TWO) is a good stock to invest in.
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Disclosure: Some of us currently hold a phase #1 [2%-4%] position in TWO....
Live Long and Prosper....
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Post by xray on Aug 20, 2021 16:20:25 GMT
Appears that the insiders may know something we don't. They sold 284,000sh @ 6.46 on 8/12. We shouldn't be in any hurry to buy any of it currently. Should go lower in MktPrc in the near term....
Live Long and Prosper....
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Post by xray on Aug 23, 2021 20:41:01 GMT
From Business wire on NRZ:
Business Wire
New Residential Investment Corp. Completes Previously Announced Acquisition of Caliber Home Loans, Inc. and Raises Third Quarter 2021 Common Dividend to $0.25
Mon, August 23, 2021, 4:15 PM
New Residential to combine Newrez and Caliber platforms into premier financial services company
New Residential declares increased third quarter 2021 common dividend of $0.25 per common share
NEW YORK, August 23, 2021--(BUSINESS WIRE)--New Residential Investment Corp. (NYSE: NRZ; "New Residential" or the "Company") announced today that it completed the previously announced acquisition of Caliber Homes Loans, Inc. ("Caliber"), a leading mortgage originator and servicer. The transaction was initially announced on April 14, 2021.
"The completion of the Caliber acquisition is another significant step in growing a leading mortgage company with tremendous earnings power within New Residential," said Michael Nierenberg, Chairman, Chief Executive Officer and President of New Residential. "We are very pleased to reach this milestone and officially welcome Caliber into the New Residential family. With this acquisition we have extended our ability to offer a broad spectrum of mortgage products to borrowers throughout their homeownership journey. We expect the combination of Caliber and Newrez to contribute meaningfully to New Residential’s growth in 2021 and beyond."
Upon close of the acquisition, New Residential intends to bring together the complementary mortgage platforms of Caliber and Newrez LLC ("Newrez"), New Residential’s wholly owned mortgage originator and servicer. The strategic acquisition expands New Residential’s capabilities, products and presence across mortgage origination and servicing. In particular, the acquisition adds approximately $150 billion UPB of MSRs, technological enhancements, exceptional talent, and an extensive local footprint particularly in purchase lending. New Residential expects that the combined company will offer more products across the mortgage spectrum, making it easier for customers and partners to get the solutions best suited for their homeownership goals. On a combined basis, Newrez and Caliber funded approximately $45 billion UPB of volume during the second quarter of 2021 and serviced approximately $465 billion UPB of mortgage loans, ranking their combined performance amongst the Top 5 non-bank leaders in both categories.
Leadership
Following the close of the acquisition, Sanjiv Das and Baron Silverstein will lead the combined platform with Sanjiv Das taking on the role of Chief Executive Officer and Baron Silverstein taking on the role of President and Chief Operating Officer.
Said Mr. Nierenberg, "Sanjiv and Baron each bring robust experience in financial services and consumer lending and have demonstrated track records of success in growing organizations and achieving exceptional results. Their backgrounds, expertise, and styles will serve to create a dynamic and collaborative leadership team unmatched in the market. I look forward to what the combined organization will achieve under their collective leadership."
Financing
New Residential financed the acquisition through a mix of existing cash and available liquidity on the New Residential and Caliber balance sheets.
Third Quarter Common Dividend
New Residential also announced today that its Board of Directors has declared an increased third quarter 2021 common stock dividend of $0.25 per common share. The third quarter common stock dividend is payable on October 29, 2021 to shareholders of record on October 4, 2021.
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Disclosure: Some of us increased our share holdings this morning to phase #4 [8%-10%] based on our weekend analysis [8star, Report card Grade of 80 with the Power Rating of 90]. Early this morning MktPrc was 9.80 [with a "Book Value" of 11.27 (undervalued)]. Dividend increase brings dividend to >10% going forward....
Live Long and Prosper....
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Post by xray on Aug 25, 2021 16:21:15 GMT
From: Zacks
New Residential (NRZ) Closes Caliber Buyout, Hikes Dividend
Zacks Equity Research
Wed, August 25, 2021, 9:07 AM
NRZ-PC
+0.12%
New Residential Investment Corp. NRZ has completed the previously-announced acquisition of Caliber Homes Loans, Inc., an eminent mortgage originator and servicer. With this, the company has expanded its mortgage operations with around 4% of the mortgage origination market share.
The acquisition was funded through a mix of existing cash and liquidity available on the balance sheets of both companies.
Per New Residential management, “with this acquisition we have extended our ability to offer a broad spectrum of mortgage products to borrowers throughout their homeownership journey. We expect the combination of Caliber and Newrez to contribute meaningfully to New Residential’s growth in 2021 and beyond.”
With the buyout, the company will combine its flagship mortgage originator and servicer arm, Newrez LLC, with Caliber, thereby, augmenting competencies, products and footprint across mortgage origination and servicing businesses.
Specifically, the buyout adds around $150 billion unpaid principal balance (UPB) of mortgage service rights (MSRs), improved technological operations, and an expanded local presence, particularly in the purchase lending space.
On a combined basis, Newrez and Caliber funded around $45 billion UPB of volume in second-quarter 2021 and serviced $465 billion of mortgage loans. Hence, the buyout posies New Residential to capture significant market share and accelerate growth.
Following the buyout announcement, New Residential cheered investors with a 25% dividend hike in third-quarter dividends. It will now pay out a dividend of 25 cents per share, up from 20 cents disbursed in the prior quarter. The increased dividend will be paid out on Oct 29 to its shareholders of record as of Oct 4, 2021.
The company’s ability to sustain the hiked dividend depends on the operational strength and the payout ratio. Its current payout ratio of 50.8% is lower than its industry’s average of 77.6%, indicating scope for its steady dividend increase.Its performance depicts a robust earnings picture. Its top line is projected to witness a growth rate of 19.4% in 2021.
We believe that such disbursements highlight the company’s operational strength and commitment toward rewarding its shareholders handsomely.As investors are always on the lookout for companies with a track record of consistent and incremental dividend payments to bet their money on, solid dividend payouts are therefore arguably the biggest enticement for REIT investors. Such moves also boost investors’ confidence in the stock and will likely bump up the company’s shares in the upcoming period.
Shares of this Zacks Rank #3 (Hold) company have gained 32.1% over the past year, underperforming the industry’s 36.2% rally.
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Live Long and Prosper....
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Post by xray on Aug 25, 2021 16:31:50 GMT
NRZ article:
New Residential Bets Servicing Can Beat the Fed
Can collecting checks save the company from the Federal Reserve?
By Brent Nyitray, CFA
(TMFBrentNyitray)
Aug 25, 2021 at 11:20AM
Key Points
The Federal Reserve is going to begin its tapering process, which will hurt mortgage originators and mortgage REITs.
New Residential is betting that servicing will offset the drag from the Fed.
Compared to its future opportunities, the company looks cheap right now.
"Don't fight the Fed" is an old market saw. When the Federal Reserve starts raising rates, markets are vulnerable -- especially right now, in the mortgage space. In the latest Federal Open Market Committee minutes, most participants anticipated the Fed would begin scaling back its purchases of Treasuries and mortgage backed securities at the end of the year. New Residential Investment (NYSE:NRZ) believes that its current business model will allow it to prosper no matter what the Fed does. Thanks to a somewhat arcane asset, they might be correct.
The Fed was a tailwind for the mortgage business last year
In the beginning of the COVID-19 pandemic, the Federal Reserve cut interest rates to the floor and began purchasing $80 billion a month in Treasuries and mortgage-backed securities, all to stimulate demand in the economy. This activity was a boon for mortgage originators, unleashing a wave of mortgage refinance activity. Numerous originators like Rocket and UWM Holdings took advantage of the environment to conduct initial public offerings.
But going forward, the Fed will become a headwind for the mortgage business.
As more Americans get vaccinated and the economy starts recovering, the Federal Reserve is looking to reduce its footprint in the mortgage market. Since the Fed is one of the biggest buyers of mortgage-backed securities, its exit will drive mortgage rates higher, while driving down mortgage-backed securities' prices relative to Treasuries. This is generally bad news for companies like mortgage real estate investment trust New Residential.
Mortgage servicing rights like higher rates
New Residential's strategy to mitigate the effects of the Fed rests upon its holdings of mortgage servicing rights, or MSRs. These somewhat esoteric financial instruments have one unusual aspect that sets them apart from virtually every other financial security out there: Unlike stocks and bonds, they increase in price when interest rates rise.
Every newly created mortgage loan has two parts: the loan itself, and the servicing -- the right to handle the loan's administrative tasks, and get paid for it. When New Residential originates a mortgage, it will sell the loan itself into the market and keep the servicing -- aka the MSR -- for itself.
Mortgage servicers send the borrower their monthly bill, ensure that taxes and insurance get paid, report interest paid to the IRS, and deal with the borrower if they get into trouble and cannot make the monthly payment. In return, the servicer earns 0.25% of the loan amount per year. If the borrower is like the vast majority of borrowers out there, the servicer has a pretty easy job, collecting $1,000 a year on a $400,000 loan for sending bills and cashing checks.
The right to service the loan (and collect that fee) is worth something. The owner can sell that mortgage servicing right for cash, or hold it and collect the fees. If interest rates rise, the chance of the borrower repaying the loan early decreases, since it won't make sense to take out a 4% mortgage to refinance a 3% one. With borrowers likely to need servicing for a longer period of time, the expected life of the MSR increase. That's why its value rises alongside rates.
New Residential is betting that when the Fed starts increasing rates, it may originate fewer mortgages, but its portfolio of mortgage servicing rights will pick up the slack. It is hard to tell whether that will come to pass, since there are a lot of moving pieces here, but the basic theory is correct. Keep in mind that mortgage servicing rights are generally not a big part of New Residential's balance sheet. It holds $4.2 billion in mortgage servicing rights, representing about 11% of assets. New Residential plans to hold these as an asset and collect the servicing income. When rates rise, the value of the portfolio will increase, and that will hopefully offset the decline in mortgage origination income.
New Residential is cheap right now
New Residential is trading extremely cheaply right now. It just reported book value per share of $11.27 and the stock is trading at a hefty discount to that. The market is basically ignoring the value of the origination business and valuing New Rez like a garden-variety mortgage REIT. On the earnings conference call, CEO Michael Nierenberg reiterated the company's view that if you assigned an earnings multiple to the mortgage arm, book value per share should be around $13 to $15 per share.
The problem with the entire sector is that investor sentiment is pretty negative given the posture of the Fed. New Rez is a value stock at this point, and given its $0.20 quarterly dividend, it has a yield topping 8%. Investors are getting paid pretty well to wait and see whether New Residential's bet is correct and mortgage servicing will offset the issues when rates rise. Income investors should take note.
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Comment: Article was written without the knowledge that NRZ has just increased their dividend from $0.20/Qtr to $0.25/Qtr [$1.00/Yr] and the dividend [at announcement was >10%]....
Live Long and Prosper....
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Post by xray on Sept 1, 2021 16:32:37 GMT
NRZ is being taken off "Penny Stock" status [now >10.00] with early morning trading now at 11.05....
Current Report card grade is 88 with a power rating of 97. Currently 10star with a 8.83star 13wk average [looking back to COB Friday]. Last week's analysis performance was +344 [+281 was required] and has a current dividend of 9.29% [COB Friday] with their just raised dividend to $0.25/Qtr from $0.20/Qtr [$1.00/Yr]....
Disclosure: Some of us currently have a phase #5 position [>10%] in NRZ with a current average MktBuyPrc of 10.05 [with a current CapGain of $1,658.00]....
Live long and Prosper....
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Post by xray on Sept 1, 2021 17:23:43 GMT
References:
Post by xray on Jul 16, 2021 at 10:04am
KYN makes the Barron's Newsletter:
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6 Funds That Have Caught Wall Street’s Eye
By Randall W. Forsyth
Updated July 15, 2021 9:28 am ET / Original July 14, 2021 10:59 am ET
BARRON'S NEWSLETTERS
Closed-end funds have been almost exclusively the province of individual investors. They’re pitched to retail in their initial public offerings and then are predominantly traded in the secondary market by individuals or their advisors.
Few CEFs attract institutional investors—in large part because most are relatively small in overall size and trade in relatively limited volumes, which limits their liquidity. That’s a key consideration for institutions that may need to buy and sell in multimillion-dollar sizes, far bigger amounts than most individuals deal in.
One result is the CEF market tends to be inefficient, meaning the funds’ prices can depart from their intrinsic values. In perfectly efficient markets, traders would instantly pounce on such anomalies, buying cheap funds and selling dearly priced ones. That’s not the reality in this sector, given wide spreads between bid and ask prices for only small amounts of stock, in many cases.
The Kayne Anderson Energy Infrastructure fund (KYN) focuses on master limited partnerships, including those operating major pipelines.
As usual, these screens offer a starting place for investors to investigate ideas. In these names, you will also find some company among professional institutional investors.
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Update [COB Friday 8/27]:
KYN:
..... 3/21/21 ................................................................................................ 8/27/21
-MktPrc: 7.30 ................................................................................................. 8.04
-NAV: 8.26 ..................................................................................................... 8.98
-Current Star Rating: 7star ............................................................................... 10star
-13wk Star Rating: 8.52 stars ........................................................................... 10.00stars
-Trend: +2.13 [>+0.98 required] ...................................................................... +2.68 [>+2.37 required]
-YTT total analysis Scoring: +1.46 [>+1.39 required] .......................................... +2.27 [>+1.83 required]
-Total analysis scoring last week: +323 [>+286 required] .................................... +377 [>+281 required]
-Current Report Card Grade: 85 ........................................................................ 100
-Projected Report Card Grade [next week]: 75 .................................................... 100
-Current Power Rating: 91 [indicating Report Card grade will increase] ................... 100
-Change in MktPrc last 2-wk period: +$0.17 ........................................................ +0.01
-Chart Power Gain/Loss: +8.41 [>+12.20 required] ............................................. +8.88 [>+12.71 required]
-Change in Intrinsic Value: -$0.15 ...................................................................... +1.14
-Risk to current portfolio's: +0.357 [>+0.280 required] ........................................ +0.243 [>+2.74 required]
-Sell Code: 0 ................................................................................................... 2
[1-no risk, 2-indicates low risk, 3-indicates some normal risk, 4-neutral, 5-at risk, 6/7-very risky [lower # of shares], 8- beyond reasonable risk - sell out]
-Dividend: 8.22% ............................................................................................. 9.33 [dividend was increased +0.025 on 6/15]
-Next estimated Dividend announcement: +$0.175/Qtr = +$0.70/Yr [x-div 7/2, pay 7/13]
Market price increases causing current decline in dividend....
-Dividend sustainability: 648 [>+552 required] .................................................... 648 [>+561 required]
-MTB: -0.98 [>+1.01 required] .......................................................................... +1.01 [>+1.01 required]
-YTD increase: +1.13 [>+0.73 required] ............................................................. +1.21 [>+1.12 required]
Disclosure: Some of us currently have a Phase #4 position [8%-10%] in KYN with a current MktBuyPrc of 8.49 [CapGain $3,170.00]....
Live Long and Prosper....
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Post by xray on Sept 6, 2021 20:40:13 GMT
NRZ Update:
NRZ [COB Friday 7/16]: .......................................................................... 9/5 ..........
-MktPrc 9.51 .......................................................................................... 10.99
-Book Value ....... 11.37 .......................................................................... 11.27 [reported 7/29]
-Latest Insider Buying activity: 4/19/2021 100,000sh @ 10.10
-Current Star Rating: 7star ...................................................................... 10star
-13wk Star Rating: 8.17 stars .................................................................. 9.33star
-Trend: +0.64 [>+1.52 required] ............................................................. +4.92 [>+2.93 required]
-Current Projection: 70 [Neutral] .............................................................. 100 [>+75 required]
-YTT total analysis Scoring: +0.64 [>+1.23 required] .................................. +3.51 [>+2.25 required]
-Total analysis scoring last week: +310 [>+283 required] ............................ +360 [>+290 required]
-Current Report Card Grade: 82 ................................................................ 93
-Projected Report Card Grade [next week]: 88 ............................................ 100 [>+4 required over RptCard]
-Current Power Rating: 99 [indicating Report Card grade could go higher] ...... 100
-Change in MktPrc last 2-wk period: -0.77 .................................................. +23
-Chart Power Gain/Loss: +10.16 [>+13.52 required] ................................... +10.48 [>+12.74 required]
-Change in Intrinsic Value: +$1.19 [[>+0.05 required] ................................ +0.51 [>+0.21 required]
-Risk to current portfolio's: +0.181 [>+0.179 required] ................................ +0.492 [>+0.316 required]
-Sell Code: 0 [0-2 indicates no risk, 3 indicates some risk, 4 neutral, 5 re-analyze/wash sale,
>6 starts reducing shares/sell out]
-Current Dividend: 8.32% .......................................................................... 9.10%
Dividend increased to $1.00/Yr [+$0.25/Qtr] up from $0.80/Yr [+$0.20/Qtr] previously
-Dividend announcement: 8/23 ... "Previous" [+$0.25/Qtr = +$1.00/Yr] x-div 10/2, pay 10/29
-Dividend sustainability: 620 [>+562 required]
-MTB: -0.96 negative [>1.00 required] ......................................................... +1.03 [>+1.01 required]
-YTD increase: +1.24 [>+0.98 required] ....................................................... +0.88 [[>+1.26 required]
Disclosure: Some of us have increased our current position to phase #5 [10%] from our previous phase #4 [8-10%] in our portfolio's....
One single opinion of the many I am sure....
Live Long and Prosper....
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Post by xray on Sept 8, 2021 16:23:52 GMT
NRZ [outside] opinion:
2 Mortgage REITs to Buy in September
Sep 08, 2021 by Brent Nyitray, CFA
It's hard to really like the mortgage real estate investment trust (mREIT) sector right now. The Federal Reserve is about to begin trimming its purchases of mortgage-backed securities, and that will be a headwind for the entire sector.
That said, there are some mortgage REITs that are more focused on mortgage origination, and these stocks should be more insulated than the rest due to a change in the rules out of the Federal Housing Finance Agency. The first one is New Residential (NYSE: NRZ), and the second is Redwood Trust (NYSE: RWT).
While the Fed has consistently said that it is nowhere near raising the Fed Funds rate, it is ready to trim its purchases of Treasuries and mortgage-backed securities. The Fed mentioned in its July Federal Open Market Committee (FOMC) minutes that it has become concerned about the rapid pace of home price appreciation and whether its purchases of mortgage-backed securities is exaggerating the moves.
Jerome Powell said at the Jackson Hole, Wyoming meeting that the economy has made enough progress on unemployment and inflation to begin reducing asset purchases (in other words, Treasuries and mortgage-backed securities). He anticipated that the process could begin by the end of the year.
In 2013, the Fed was in the same position and began reducing asset purchases at the end of 2013. The mortgage REIT sector as a whole underperformed, and agency REITs like AGNC Investment Corp. and Annaly Capital cut their dividends and saw big declines in book value. While the Fed probably won't be as aggressive cutting asset purchases this time around, the Fed will remain a headwind for agency REITs going forward.
Here's some information investors should consider about the two mREITs we're recommending for September.
New Residential
New Residential is a combination mortgage REIT and mortgage originator. Historically, the company has focused primarily on mortgages that cannot be insured by the government-sponsored entities (GSEs) Fannie Mae and Freddie Mac. These loans were called non-qualified mortgages (Non-QM), and they are a growing part of the mortgage market.
Non-QM mortgages have nothing in common with the subprime mortgages of the mid-2000s. These are often targeted toward professional real estate investors or self-employed individuals without W-2 income. New Residential is a big player in this space, and non-QM lending should be relatively insensitive to the Fed's buying of agency MBS. While New Rez does have exposure to agency lending and holds agency mortgage-backed securities, it will be more insulated than the typical agency REIT.
The best thing about New Residential is that it is undervalued on a sum-of-the-parts basis. New Rez is trading below its $11.27 book value per share, which is largely made up of the company's mortgage-backed securities portfolio. The Street is assigning little to no value to the mortgage origination arm, and that provides some downside protection to the investor. New Rez recently bumped up its dividend and yields 9.2%.
Comment:
1... RWT failed a preliminary analysis for inclusion to some of our "Watch Lists"....
2... NRZ is no longer a "Penny Stock" [>$10]....
Live Long and Prosper....
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Post by xray on Sept 16, 2021 16:45:19 GMT
Reference my 9/1 post:
KYN News:FMO Announces Board Approval of Merger with KYNFiduciary/Claymore Energy Infrastructure Fund Wed, September 15, 2021, 9:39 PM KYN -0.88% FMO -0.67% NEW YORK, Sept. 15, 2021 (GLOBE NEWSWIRE) -- Fiduciary/Claymore Energy Infrastructure Fund (“FMO” or the “Acquired Fund”) announced today that FMO’s Board of Trustees approved a merger of FMO with and into Kayne Anderson Energy Infrastructure Fund, Inc. (“KYN” or the “Acquiring Fund”, and together with FMO, the “Funds”), subject to FMO shareholder approval.The proposed merger is intended to provide potential benefits to shareholders, including enhanced investment opportunities, improved liquidity, and certain efficiencies, among other things. The merger is subject to approval by the shareholders of the Acquired Fund. FMO expects to submit proposals to shareholders for approval at an upcoming Special Meeting of Shareholders expected to be held in the first quarter of 2022.Basic terms of the proposed merger, subject to shareholder approval, include: The outstanding common stock of FMO will be exchanged for newly-issued common stock of KYN. The aggregate NAV of common stock of KYN received by FMO shareholders in the merger will equal the aggregate NAV of common stock of FMO shares held by such shareholders immediately prior to the merger. FMO shareholders may receive cash for their fractional common shares. The investment objective of KYN is to provide a high after-tax total return with an emphasis on making cash distributions to stockholders. As the surviving fund, the investment objective of KYN will remain unchanged. The Acquiring Fund plans to file with the U.S. Securities and Exchange Commission (“SEC”) a registration statement/proxy statement on Form N-14 that will be provided to shareholders as of the record date for the meeting. When available, the registration statement/proxy statement and proxy statement will describe in detail the terms of the proposed merger and the proposals being submitted to shareholders, as applicable. When finalized, shareholders are encouraged to review the registration statement/proxy statement and proxy statement on the SEC website at www.sec.gov. The investment adviser to FMO is Guggenheim Funds Investment Advisors, LLC. The investment adviser to KYN is KA Fund Advisors, LLC. It is currently anticipated that the merger will be completed in the first quarter of 2022, subject to required shareholder approvals and the satisfaction of applicable regulatory requirements and other customary closing conditions. Live Long and Prosper....
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Post by xray on Sept 16, 2021 16:48:17 GMT
KYN Announcement of the merger: Kayne Anderson Energy Infrastructure Fund Announces Proposed Acquisition of Fiduciary/Claymore Energy Infrastructure Fund Kayne Anderson Energy Infrastructure Fund, Inc. Wed, September 15, 2021, 9:40 PM KYN -0.78% FMO -0.67% HOUSTON, Sept. 15, 2021 (GLOBE NEWSWIRE) -- Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) (NYSE: KYN) announced today that the Company has entered into a merger agreement with Fiduciary/Claymore Energy Infrastructure Fund (NYSE: FMO). Pursuant to this agreement, FMO will be acquired by KYN, with FMO’s shareholders being issued shares of KYN common stock in exchange for their shares of FMO common stock (as described below). The merger is expected to qualify as a tax-free reorganization for federal income tax purposes, and as a result, the transaction is not expected to be taxable to KYN’s stockholders or FMO’s shareholders. This transaction has been unanimously approved by KYN’s Board of Directors and FMO’s Board of Trustees. Closing, which is expected in the first quarter of fiscal 2022, is subject to FMO shareholder approval, compliance with all regulatory requirements, and satisfaction of customary closing conditions. As a result of the merger, the outstanding common stock of FMO will be exchanged for newly issued common stock of KYN. The exchange ratio will be based on the relative per share net asset values of FMO and KYN immediately prior to the transaction’s closing date. Based on each fund’s current per share net asset values, KYN expects to issue approximately 9.3 million shares of common stock to FMO’s shareholders. Jim Baker, President, CEO, and Chairman of KYN said, “We are pleased to announce this transaction, which we believe is in the best interest of our stockholders. We believe the merger is a tax-efficient way for FMO’s stockholders to continue investing in the energy infrastructure sector through KYN’s large and diversified portfolio. As the largest closed-end fund focused on energy infrastructure investments, we believe KYN is a natural consolidator. Our investors should benefit from the potential cost savings that come with increased size and scale, enhanced trading liquidity, “best in class” access to the capital markets, and additional investment opportunities as we look to capitalize on the energy transition.” “KYN’s investment focus – equity investments in North American energy infrastructure companies – and its investment objective – to provide a high after tax total return with an emphasis on making cash distributions to stockholders – remain unchanged. We continue to be optimistic about the outlook for energy infrastructure companies over the next few years. Further, we believe KYN’s portfolio is well-positioned to benefit from a continuation in the economic recovery as more progress is made containing the COVID-19 pandemic as well as capitalize on opportunities related to the transition away from traditional carbon-based fuels to a more sustainable mix of lower carbon and renewable energy sources,” continued Mr. Baker. “KYN’s distribution policy, which considers net distributable income as well as realized and unrealized gains from KYN’s portfolio investments when determining KYN’s distribution, will remain in place after completion of this transaction. We recognize that distributions are a significant part of the value proposition that KYN provides to its investors, and one of management’s most important long-term goals is to provide the Company’s investors an attractive distribution”, concluded Mr. Baker. KYN plans to file with the U.S. Securities and Exchange Commission (“SEC”) a registration statement/proxy statement on Form N-14 that will be provided to FMO shareholders as of the record date for the meeting. When available, the registration statement/proxy statement will describe in detail the terms of the proposed merger and the proposals being submitted to shareholders, as applicable. When it becomes effective, FMO shareholders are encouraged to review the registration statement/proxy statement on the SEC website at www.sec.gov. Live Long and Prosper.... |
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Post by xray on Sept 16, 2021 17:14:04 GMT
Reference COB Friday:
KYN "NAV" increased to 9.03 [from 8.88] yesterday with MktPrc [in early trading this morning] increased to 7.95 [from 7.89 and remains at discount]....
Dividend is currently 9.51% ....
Disclosure: Some of us continue to have a Phase #4 position [8%-10%] in KYN with a current CapGain $3,170.00]....
WARNING: Penny Stocks [<$10] are "NOT" for everyone and are "ALWAYS" considered at "HIGH RISK". "Careful analysis" of Penny Stocks are always required along with "EXPOSURE" to one's portfolio [# of shares allocated to any single penny stock]....
Live Long and Prosper....
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