A company that wants to survive and protect shareholders asks as such. Buying back shares and debt at 30% on the dollar- Thats what we want. Cash flows are positive- Debt shares seem to be totally undervalued- Does the common come back?? It may be the mutual Funds stay away for now..Personally I would rather go for the dividends over the common,plus the bonds and pref shares are safer. 7.00 seems to be the bottom of the Pref shares..Put in a buy order at 6.95 on the D shares- If you get them Great
Update: RSO's stock fell from $5.15 when its common offering was anounced. The secondary priced at $4.50 last night, with 10 million shares being sold (poor showing). The stock fell today below the secondary offering price to $4.33. They were hoping for about $57 million in proceeds, but had to settle with $45 million. Now, the investors in that offering are underwater.
Takeaway: This could be an opportunity to pick up some RSO shares on the cheap. With the additional $45 million in cash ($42 or so after commissions) RSO is probably the least risky of all the cmREITs. It has forecast a $1/year dividend for next year. A good buy on the uncertainty.
Other data: GE Capital sees loan losses peaking in 2010 and earnings recovering in 2011.
Hey Ag, A question from a thread I started at the RSO board. Does RSO have to pay out to shareholders the gains recorded on debt repurchases? If so, where would they get such money, they just spent it?