Newcastle Investment Corp. (NYSE:NCT): Where is it Heading?- NRZ, GHSE


Dallas, Texas 09/19/2013 (Financialstrend) – A real estate investment and finance company, qualified as Real Estate Investment Trust (REIT), Newcastle Investment Corp. (NYSE:NCT) invests in and manages portfolio of real estate securities, real estate related assets, excess mortgage servicing rights and loans. The company’s real estate securities portfolio includes commercial mortgage backed securities, asset backed securities, senior unsecured debt, and FNMA securities. Newcastle Investment Corp. (NYSE:NCT) spun off New Residential Investment Corp (NYSE:NRZ), earlier this year effective May 15, 2013; taking mortgage assets off its balance sheet.

During the post spin-off investor presentation the company presented to have cashed out its CDOs (Collateralized debt obligation) to make sure the future transition to senior housing with focused play on real estate within a year. However with the news coming in to own and control more than 400 newspapers across the United States, have certainly given its investors a head pinch. The company also announced, earlier this month, to have reached an agreement with the debt holders to restructure GateHouse Media, Inc. (OTCMKTS:GHSE)’s whopping $1.2 billion debt. Given the REIT status of Newcastle Investment Corp. (NYSE:NCT) it would be of paramount interest for investors to see how quickly it would spin-off the new entity to avoid tax complications.

In a most recent release, research equities analysts at ZACKS have upgraded the rating for the Newcastle Investment Corp. (NYSE:NCT)from ‘underperform’ to ‘neutral’ with price target of $5.80. Earlier research analysts at UBS AG who maintain ‘buy’ rating for the stock also upgraded their price target from $6.50 to $7.00. The stock currently maintains consensus ‘buy’ rating with average price target of $7.69.

On Wednesday, September 18, 2013 the stock closed at $5.80 with intraday gain of 1.40%. The intraday range remained between $5.64 and $5.85. The stock has 52-week bottom around $4.70 and on the upper side it touched $12.49. The stock has gained almost 10.5% in trading sessions during last one month.  Newcastle Investment Corp. (NYSE:NCT) has market capitalization worth $1.7 billion.

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