1 Stock Getting Hammered Today

Boosted by comments from Ben Bernanke, the broader stock market was climbing higher this morning; however, Newcastle Investment Corp.  (NYSE: NCT  ) was trading lower after being downgraded by a research firm.

In this video, Motley Fool financial analysts Matt Koppenheffer and David Hanson discuss the company and tell investors how they react when a stock they hold receives a downgrade.

Like Newcastle, there's no question Annaly Capital's double-digit dividend is eye-catching. But can investors count on that payout sticking around? With the Federal Reserve keeping interest rates at historically low levels, Annaly has had to scramble to defend its bottom line. In The Motley Fool's premium research report on Annaly, senior analysts Ilan Moscovitz and Matt Koppenheffer uncover the key challenges the company faces and divulge three reasons investors may consider buying it. Simply click here now to claim your copy today!


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  • Report this Comment On May 22, 2013, at 5:18 PM, drvr101 wrote:

    Correct me if I'm wrong, but if REITs are supposed to pay out 90% in dividends, I don'tunderstand if rates go down now why sell, it's a buying opportunity. Rates won't be down forever!!

  • Report this Comment On May 22, 2013, at 6:22 PM, techy46 wrote:

    mREIT's pay out 90% of the leveraged spread between short term instruments and longer term agency real estate paper. If short term financing goes up before REIT's adjust their holdings then the value of their holding will go down along with the spread in rates.

  • Report this Comment On May 23, 2013, at 2:21 PM, TMFKopp wrote:

    Quick note for anyone watching the video and noting that the chart shows a 50% weekly drop. That's driven by the company's spin-off (http://finance.yahoo.com/news/newcastle-announces-completion... and doesn't represent a "real" loss for investors that held prior to the spin-off.

    I wanted to make sure that wasn't a source of confusion, but that's a separate topic from what David and I are discussing in the video.

    Matt

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