The year's worth of dividend will probably be lost in one day today (Enjoy dividend junkies!)
Just when you think you are going to get some breather, you get screwed.
Why I have stuck with this company after getting screwed so many times is what is i will be pondering for long time.
Well, you should be selling at the top, at least half your shares... Ras is not a stock you hold on to for long. Always make sure you pocket your 50% profit, because history shows, it wont stay up there for long, and it has been the case again.
Ras is a trading stock. You van fairly easy make 20-30% gains and if you buy near the lower to mid trading ranges, you can easily make 50%.
The price drop due to the new issue is likely to exceed 10%, I don't think they can market the stock successfully otherwise. Thus the drop will probably be double the total of all dividends paid since they restarted them. What's more, the issue price will put a cap on the open market price, probably for a couple months. That will be long enough for it to take root and stay there for some time longer.
I'm expecting an issue price to be somewhere in the high $4's.
I fail to see any long term benefits in this; it's just an alternative to borrowing money to keep things floating along. Davis will probably see this as a good thing and tell us how the company is acting in our best interests. I'm looking forward to that explanation.
When a company makes headway, the share price usually increases. When it doesn't, the prices stagnates or falls. It's a question of direction, not motion. Even a dead fish can go with the flow.
Looks like the 10% drop won't happen. My view before the pricing was released was about the same as yours though. I had an sell order up and ready to submit when I realized that we might not go under $4 after all.
Lot's of volume, but the change was all in the after market trading yesterday. Not so bad.
Another case of impecable timing - leaving aside the question of whether they should do it - management has a knack for pricing into a buzz saw of a declining market. They did the same with the convertible debt a year ago. So the existing shareholders get a double wammy of dilution....