This is my therory on part of why the shares are underperforming.
We dropped $.10 from $23.90 to $23.80 from Wednesday to Thursday; then another $.10 from $23.80 to $23.70 today. Looks like part of the culprit is the volume and open interest on June 22.50's. So, if someone bought them today for $1.15 with a strike of $22.50. the basis is $23.65. If they then turn around and sell them for $23.70, they make $.05. On 1,104 contracts today, that is 110,500 x .05 or $5,525. There is also another 2,124 contracts in open interest expiring today. So, that adds another 212,400 shares for .05 or $10,620. I know it sounds like pittance, but until they can burn through the volume and open interest on the 22.50's, there is little hope we will see something above $23.70. Tough way to make money, but obviously a good way to trade when you have the resources. Please shoot holes in this theory if you want. I am glad I am out for now. I also think there is an overhang of shares from the spo, but there may will be a pop on Monday.
Ben, Your hypohesis sounds right, but then I frequently think only what I am told to think.
I was thinking all day that the june 22.5's were holding the price down. I sold almost half of my July22.5 early for 1.30 this morning then decided screw em. I will exercise piecemeal until I am through. Then I thought we will see a small pop on monday, maybe even a large one. So I was waiting for a day's end lift to confirm. Now if Greece does not cause havoc..., or if it does...
I expect an immediate spo as well. My september and december itm's can wait.
They'd need to file another S-11 first. The company is less than one year old and cannot file a self-registration (S-3) yet.
So, another SPO immediately after x-div date? Possible, but the S-11 must come first and I seriously doubt you'll see another one so quickly. The company is too small and the mgmt team here is too keen on maintaining BV as well as its dividends.
Last SPO was @ 23. Is this one going to be 23, less than 23. They always discount the price. What about book vaule? Would they do one that doesn't add to book vaule. I would think they would want the price to run a little first.
They have a little time from the last SPO to delay this one since they didn't raise the DIV. That money had a few weeks to go to work. what does the DD think.