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Chasing Value: Newcastle reports loss but pays dividend |
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| Aug 12, 2008 01:42 PM UTC |
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Tracked Blogger
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Via BloggingStocks:
Filed under: Money and Finance Today, Chasing Value, Stocks to Buy, Newcastle Investment (NCT), Best Stocks for 2008  Although Newcastle Investment Corp. (NYSE: NCT) continues to post losses, the real estate investment trust's board voted to maintain a quarterly dividend of 25 cents a share. The dividend is payable on July 30 to shareholders of record as of July 7. This continued support of the dividend leaves the stock above a 15% yield as of the close yesterday at $6.67.Newcastle reported a loss in funds from operations of $87.7 million, or $1.66 a share, in the April-June period, compared with a gain of $34 million, or 64 cents a share, in the year-earlier quarter. The company booked a $63.2 million charge related to its sub-prime securities portfolio. Revenue fell nearly 40% to $115 million from $191.9 million in the second quarter of 2007. This is a highly leveraged company that is trying to ride out a turbulent real estate and financial market. It holds a wide variety of industrial, commercial and retail notes, with about 10% of the portfolio in residential notes. It has been hurt by the collapse of the commercial mortgage backed securities market (CMBS) which does not show signs of recovery in the near term. Negative earnings and high leverage are not inviting to most investors right now. But I think the company will survive and it is paying a very high yield and has been for quite some time. Continue reading Chasing Value: Newcastle reports loss but pays dividend Permalink | Email this | Comments<map name="google_ad_map_145-1282336"><area href="http://imageads.googleadservices.com/pagead/imgclick/145-1282336?pos=0" shape="rect" coords="1,2,367,28" /><area href="http://services.google.com/feedback/abg" shape="rect" coords="384,10,453,23" /></map> 
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