Assuming PZN STAYS at a present 12.50% yield($2.20/$17.50) New money will receive 23.7% for ONE YEAR. ($.15 special div paid in the next 3 quarters+ $1.80 special div in Dec.+ $2.20 regular div. over the next year.)
Does PZN have the business to secure payment?...of course, look at the last 4-5 news announcements.
Will dilution kill earnings? There is no dilution at their present lease rates till WAY below $10/share assuming blended financing of 1/3 equity to 2/3 debt.
Can they get financing?....they have an investment grade rating...CCA would have not been able to get that. Hong Kong Shanghi Bank has a very fat checkbook for equity.
Will the IRS come down on them?.....maybe, but my guess the outcome(spin out the management business again) is not as bad as the stock is telling us.
The bottom line with any business, financinally, is new business and margins. PZN delivers. Missing the forest through the trees it looks like to me. It's fine with me as I continue to add .