NEWT - NewtekOne: Full Steam Ahead
2024-03-10 12:27:05 ET
Summary
- NewtekOne partners with 1-800Accountant to offer accounting services, adding value to its business customer base.
- S&P raises ratings on NewtekOne's securitization notes, reflecting confidence in the company's loan underwriting.
- Earnings for 2023 exactly met the midpoint of guidance for 2023.
- The market doesn't know where to price Newtek shares given the volatility this last year and the finagling of the 2024 guidance.
- Bottom line, the 6% dividend is safe and at current prices NewtekOne shares actually represent an income opportunity with substantial chances for capital gains in the future.
Three Small News Items
First, we should begin with three small news items on NewtekOne before we dive into the analysis. All of these pieces are small positive pieces worth noting in any update on NewtekOne ( NEWT ).
Partnership With 1-800Accountant
NewtekOne partnered with 1-800Accountant on Nov 29, 2023 to offer accounting services to NewtekOne's clients. This would be adding another functionality to the Newtek Advantage, adding more stickiness to NewtekOne's business customer base. From a qualitative standpoint this is excellent for NewtekOne: on average, 1-800Accountant has been able to save the typical small business client 20-50% on their accounting costs. ...
NewtekOne: Full Steam Ahead