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CommonWealth Reit Message Board

  • johnkels johnkels Sep 20, 2010 4:25 PM Flag

    screwed again!

    5 million more shares! just when stock price was recovering. screw the mgmt.

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    • you should go with "preferreds"...can't be "skrewed with"...diluted to death or have divy cut....Preferreds are safer, more reliable.

      CWHPRD has been on fire...appreciation + divy.

      AHTPRD...try that one...goes "x" dividend in a week...pays around 9.15%....Own it by end of next Monday,to get the 2.3% quarterly payout, based on current price...(0.5281 cents/share)...Easy money for a week's work !

    • Breach of fiduciary duty and shareholder oppression are grounds for a lawsuit. The following is a link for starting such a lawsuit,

      http://www.stites.com/services/9-96/company-management-governance-and-control-litigation

      I do not have the time to start it, but if someone is willing to start it I will gladly join in. This management team has in my opinion done everything to oppress shareholder value.

    • I previously posted the following on the previous dilution. This management team has done everything against increasing share holder value just to increase their personal wealth. One person suggested this management team be dramatized on the show American Greed.

      Vanguard Group with their mutual funds are the majority shareholders. We should all contact them and advise them what is going on. Follow this link for contact numbers: https://personal.vanguard.com/us/JSP/UtilityBar/Search/SearchGlobalContent.jsf?query=contact&origin=homePersonnaly I believe it is time to replace this board with one that has shareholder value in mind rather than self greed. It would be nice to see a board that pays down debt for increasing shareholder value and one that doesn't have a poison pill to prevent a take over. Management fees should not go directly into the pockets of the CEO. Growth should be contingent on increasing shareholder value not on sacrificing shareholder value for personal gain in the form of increasing management fees.

      • 2 Replies to abespec
      • Appointing an independent board is problematic. They set the trust up in such a manner as to avoid having to respect shareholder rights. I read the trust document a few years ago. I don't remember where I found it, it was probably on their corporate website. It would take regulatory change to get shareholder representation. The SEC is currently revising their regulations with respect to shareholder nominees, which might give us some relief.

        For those who think that the dilution is somehow a good thing for shareholders, think again. The book value is around $44/share. They are issuing shares for approximately $26, or $18 below book. Assuming, that CWH didn't over pay for our portfolio, the net asset value shouldn't be less than book value, which I assume is the case based upon the acquisition dates for the portfolio. The $18 discount to book value is coming out of our pockets. The Management is essentially selling our real estate well below its market value. Selling performing real estate below market, for the opportunity to buy distressed assets at market, is not in the long-term interest of the shareholders. If we want management to retire the Preferred, we would be better off if Management sold portions of our portfolio at fair market value and used the proceeds to redeem the preferred. Instead they are selling our assets at 75 cents on the dollar to redeem the preferred. Of course, Management isn't going to sell any of the portfolio, since it reduces the fees they collect. The only reason for the secondary offering is to enrich the Management at the expense of the shareholders.

        We really need an attorney, but I don't know if there is anything that can be done.

      • I just posted with a different slant but it is hard to ignore the view represented here.

    • This is not that bad for common holders.
      Good for long term.

      They will replace a fairly safe preferred with a dividend above 8% with some riskier common with a dividend aaround 7%. The price of the new shares is being determined by market - not set. The instantaneous dilution is about 8%, but they can use proceeds from the sale to not only retire some debt, but buy currently mispriced and underpriced commercial real estate at a good price. Possibly a great move over a 2 -3 year period.

      This only "screws" people who bought the past 2 weeks- for two weeks. The rest of us will benefit even and the stock will be back to yesterdays $28.00 before month end.

      People are hungry for yield. REITs and CWH give it. We have only started a longer term uptrend in REIT share prices.

      You are "in" early my friend.

      RELAX!!!!

      • 12 Replies to squidunker008
      • I just took a look at the list of institutional owners of this stock as of 6/30/10. It's a very solid list of astute well-known firms. I see a lot of value in CWH and an excellent yield.

      • Excellent analysis!

        I hope the price tanks more so I can scoop up more shares.

      • I'd like to agree with the last comment but this is not the first dilution move they have made here. I would like to think there is movement to take out as much preferred as possible and covert more and more to common. The risk reward in these businesses has changed dramatically since the financial meltdown. There is potentially a lot of upside for the groups that execute well but "safe" 8% and greater yields do not fit in with the new normal. These things used to be cash flow devices but when all the underlying assets get re-priced and occupancy rates uncertain, these things should trade more as risk assets than pure yield instruments. That is my take anyway. You can't have it both ways.

    • Found it. Thanks.

      You may be seeing the beginning of more IPOs. That's why they had a R/S, so that the float looked small, and this is the reason why it's selling so far below book. Most investors are wise to their game.

      • 1 Reply to run35ok
      • The stock has sold below book for 99 out of the last 100 years.
        Get over it,get used to it and buy CLI or a similar issue where you pay over book.
        With that you get a 5% yield and the pleasure of them issuing stock.
        Besides that CWH needs the money to go vacation in Australia starting on the 23rd of this month when the MIF fund is sold to them

    • Where did you see the announcement?

      TIA

    • Well they're using it to pay back debt, so they should be able to maintain the same dividend. After the offering completes then we'll see where it goes. I just bought a few shares after hours. The REIT sector was very strong today.

 

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