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American Capital Agency Corp. Message Board

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  • jtrader64 jtrader64 Jan 29, 2013 2:59 PM Flag

    Re: Re: OT-NTI continued...

    Good information, Ray. Thanks.

    The one thing I have been wondering about though is why general partner did the SPO before earnings and the dividend if they were expecting it to be such a high number? Why not let the stock price move higher first?

    I know they still own a large chunk but why not wait another month?

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    • jtrader ...

      I would be happy with the $1.00, but here's a couple of thoughts:

      [1] From what I've seen, the GP paid $800 million for 90 million shares, or about $8.90 per share. ((An even better question is why did Marathon sell?)) This was a private equity deal. It wasn't sold to "oil men" who might want to hold it for a while; it was sold to money men who wanted to sell some possibly to finance another deal ... hard to say ... but they won't starve based on what they have left.

      [2] The price of Brent has continued to go up [including today] ... maybe more than they thought it would ... there was a fair amount of short interest in the stock from people betting Brent would go down. We're seeing a little short squeeze now, and those things aren't easy to predict.

      [3] Unlike other management teams, the GP is a group of money guys who have a recurring need for the services of under-writers; they may have wanted to make sure the under-writers and their clients were happy. I'm happy.

      [4] Finally ... hey, it's the stock market!!

    • Those shares were held by the outgoing CEO, from what I understand. He was taking deferred pay after having done the job the board wanted him to do. It was planned from the start and I am grateful for the opportunity.

    • The 10.7mm shares were a private placement - share held by someone other than NTI (ex co- CEO) - no dilution. Maybe he knew something bad was coming, but I'm inclined to believe that the seller wanted the money for some other hot investment.

      12/21"s co-founder and Chief Executive Officer Mario Rodriguez has resigned effective today and that its co-founder, President and Chief Operating Officer Hank Kuchta, has assumed the role of Chief Executive Officer of the Partnership."
      1/17"public offering of 10,700,000 common units representing limited partner interests in the Partnership "

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