If I understand the offer they are offering 95% of NAV which today is 6.65 so you would get 6.31 This is assuming a static situation until june 18.
But they are paying .05/shr as a dividend so we are looking at getting approx. 6moths of dividend early and then not own the stock. To me it is not worth doing that I will hold on to the stock and collect my monthly 50$ on my 1000 shares. That is my take on what I currently know for what it is worth. Not sure why they are doing this but it looks to me the people who will benefit most are those that keep their shares.
I don't understand why the stock hasn't gone up in light of the tender offer terms. Buy here with a chance to cash in in a few weeks with a tender price higher. No guarantee your shares will be taken but still attractive in light of todsy's stock price.
Because the stock market has been heading down. If you buy today at the discount to NAV for 6.02 and you were to get the tender offer it would be for 6.32. But if the NAV keeps falling the tender offer might not be that much of a gain (if not a loss). I don't think this is going to be the case, but you never know with these crazy markets.
Otherwise it would make sense to load up on thousands of shares.
Then again, if you think these folks know what they're doing, you are better off holding the stock, getting the PPS increase and sticking around for a few dividends as well.