A Further Correction to GRH Major Shareholder Ownership
I have been castigating Northpoint Capital LLC for having sold 1 million plus shares over the last six months. NOT TRUE!!!! They currently hold 1,455,230 shares and are the largest INSTITUTIONAL shareholder in GRH. They have not sold a share!
The mistake I made was in assuming they were the institution that was alluded to in a press release from GRH on August 29, 2012 announcing the conversion of the Series B convertible into 2,450,500 shares of common stock at $4.00 per share. IN FACT, THE INSTITUTION WAS WEST COAST OPPORTUNITY FUND! They then sold 1,225,250 of those shares on October 9, 2012 for $2.00 each! Go figure!
Also on August 29, 2012 the Series A convertible was swapped for 345,000 shares of the NON-CONVERTIBLE Series C preferred at essentially par ($25). The institution involved was also West Coast Opportunity Fund.
THIS WAS A VERY IMPORTANT FINANCIAL MILESTONE FOR THE COMPANY in that $18.6 million of convertible preferreds were eliminated for minimal dilution. It also made the Preferred C the senior preferred, which today with a current yield of 13.5% is a very compelling opportunity in this very low yield market environment.
David, thanks so much for your posts. You bring great information to light. I hold a decent stake in MHR (about 20K shares), and have started to accumulate a small position in GRH common. I agree that the yield on the Series C looks great, but how safe is it? I'm looking hard at it, and take comfort in the fact that I'd be ahead of a ton of Gary's common equity, but it's so hard to model future ability to service interest expense for an entity that is just getting a business off the ground, even one as compelling as this one. I'd appreciate any thoughts you have on it. Do you hold the Series C of GRH?
John, I am a substantial holder of both the common and the preferred. Since I am 72 and require a cash flow in retirement, my ratio is 2:1 (preferred over common), meaning I own twice as much preferred as I do common.
Later today I will address the broader question of safety. I've got to run to help one of my sons stack some firewood.
Check out the mill-pc shares if you want a good high yielding pref convertible issue. Other good ones high yield issues in the energy sector are SDRXP, PTQEP, MHR-PD and CPE-PA. I cover these in my newsletter and email alerts. My yahoo mail is mrpanick for more info..