Gediminas Jasionis

Newcastle Investment Corp. (NYSE: NCT) rises! An entertaining stock movement

by Gediminas Jasionis November 21, 2008
top_logo_bar.gifNewcastle Investment Corp. (NYSE: NCT) is one of those stocks you look at and say to yourself: ‘If only I had known...' The company's stock soared over $1 in one day. That would be miniscule increase for any decent stock. But this is a penny stock which had closed at $0.15 during the previous trading session. If you would have bought it at its lowest, you could enjoy a gain of over 700% in just one day.

Newcastle's stock continued moving up with accelerating manner today as the market opened. Although the rally seems unprecedented, it might be caused by whole market movement and smart investors just trying to make a penny in this volatile market. Individual investors are however unlikely to benefit from such moves, unless of course, one is a very lucky person.

NCT_chart.png

Newcastle's fundamental reveal the company is in deep trouble. This real estate investment and finance manager got hit really hard during the mortgage crisis. With company's losses reaching up to $100 million per quarter, it would be hard to believe Newcastle could ever recover on its own.

Unless the company gets an acquisition proposal or gets some huge investment, I would suggest not taking this stock seriously. It is fun to see it grow at such pace as today, but having your own money in it could be very costly to your portfolio.

Reference:

http://www.newcastleinv.com/

 

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