Fri, Jul 11, 2014, 12:29 PM EDT - U.S. Markets close in 3 hrs 31 mins


% | $
Quotes you view appear here for quick access.

JER Investors Trust Inc. Message Board

  • invincen invincen Dec 17, 2008 11:45 PM Flag

    Implication for Shorts

    JRT get 88 cents cash from Shorts then pay current share holders in cash and stock.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • .....This appears to be a bonehead move as you say for the short term investor. If you are under water, as I suspect nearly everyone is, then it might be wise to take your lumps now and get on. If my calculations are correct then I should end up with an additional 4k shares. The only problem that I can forsee is that if JER cannot pull this company out after a couple of years then the stock give away is a tax. I'm so far under water that I will wait it out, or lose it all. Might get more shares and a few more nine centers along the way!

    • I'm in a similar situation. I bought this as a dividend play, but some on this board don't think it's good for that any more. Personally, I don't know, and for the little we have in, it's probably worth waiting until Q1 or Q2 to see if it can run up, or keep a decent dividend.

      However, I'm going to advocate taking a short position after the ex-div, and eliminate that position around Feb 1. I think this 'paper' dividend is a bonehead play by management, and I intend to take advantage of it.

    • Well I bought 2000 shares recently at .98 and I own 1000 shares at 3.25 so I am confused as to how I should play this?

      Any suggestions?

      Breakeven would be around 1.75

    • Let's think this through. If I'm long, I'm going to end up getting no cash (let's say the .09 also goes into stock), but I get a tax bill, along with the extra shares. If I'm a short, they're going to take 1/2 my shares (as payment), but I'll probably get a tax credit. Then, when the share price plunges, I buy back my shorts, and make a profit!

      How does THAT work?

0.06750.0000(0.00%)Jul 10 8:10 PMEDT

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.