Jim Cramer - Mad MoneyRithm Capital CorpRITMDON'T BUYJan 30, 2026

Hit so badly because of interest rates. Mortgage rates in the US have gone up a huge amount. As rates rise, their existing paper goes down in value. Their spread is actually quite good. Book value should still hold in above $12.50. 

Nothing wrong with the business. Cashflow should still be quite robust, and should still continue paying the very good dividend of 11%.

They do a lot of asset management now, so lots of recurring revenue. They do not only mortgages. Also have a property management business. Trades at a huge discount to book value and pays a 10% dividend.

They are converting from a REIT into a diversified asset management business, like Blackstone. Cheap at 4x PE and pays an 11% dividend with 200% coverage. At 30% discount to book value. When they convert the PE should reach 8-9x. Shares will double in 1-2 years. Great balance sheet.