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RAIT Financial Trust Message Board

  • boxcompany1 boxcompany1 Aug 2, 2013 2:47 PM Flag


    I cursed these s.o.b.s after last unneccesasry] capital raisel. The plicks didn't even have
    the decency to make a rights offering.As soon as I saw it I knew my dream of seeing $10/sh
    this yr was crushed. . I dumped after last div. BTW four other stocks I own pulled the same #$%$,
    like HTM & some even sneakier than RAS. These Wall St. M.F.'s don't care about stockholders. I am disgusted,displeased, distressed & certainly disenchanted & plain p.o.'d It's a lot of work keeping
    up with these mumses shenanigans. Little guy has no chance

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    • Well, that is consistent with your approach to the market. Of course you criticized me for being too optimisitic back then, but I was only looking for $9 by the end of this year, a price that is still realistic (and perhaps now just a little low; the securitization changes everything).

      But you are just flat wrong on the capital raise. The capital raise in April provided the capital that allowed the securitization to close this week. In REITs you sometimes have to raise money to make money, and this was a pretty classic case of the RAS doing the right thing. The value of the loans they are writing is growing fast, and the capital raise in April made that possible.

      For my own part I'm pleased that AFFO is up 18.6% this quarter, and particularly pleased that the capital raise only increased the number of shares by 15.5%. We wouldn't have seen that growth without the capital raise, which is why I didn't complain about it. And while you and others did complain, the market was actually pretty pleased with the offering. The stock price rose considerably from the offering price in April into early May. As things stand now the price is in about the same place it was at immediately after the offering, and we have an increased 13 cent dividend to boot.

      Good luck, but you really ought to get a little more rational and realistic in your investment expectations. Dilution isn't a problem if the income it enables exceeds the amount of the dilution.

      • 1 Reply to davisfoulger
      • tamurph Aug 2, 2013 4:46 PM Flag

        I don't post here much but have owned RAS a long time, long enough to have pulled most my hair out on at least two occasions. That said, for the last year or so, seems when I start to get irritated with it, something happens (or doesn't happen) and the share price starts going back up. If this thing is basically on solid footing, with such a great dividend, I can live with the swings I suppose.

    • But the last capital raise was done at prices higher than it trades today. You can BUY at cheaper prices than those folks got. Also, if you owned at lower prices before the capital raise you did better than any of those that bought in.

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