It seems rather clear that the secondary was ill timed.Codi has had to pay out distributions on the new stock and the income from the secondary has been next to zilch.Poor decision on the part of management to sell stock at a low level when new company's or add on company's were not identified and close to being acquired.The cost of that capital, at this point, appears too great considering no income benifit has been derived.The secondary should have waited until they had something substantial in their sights.
With 20-20 hindsight, I agree. However, I do believe that mgmt had acquisitions "in sight" at the time, but they didn't come to fruition. I have no facts to point to, other than mgmt's comments made in the CCs and at an investor's conference. Perhaps its just my unflagging hope for an acquisition announcement!
And if they had no targets in mind, then the secondary looks like a colossal premature ...
When they issued the secondary,as a result of the distributions to be paid on the newly issued stock,their cost of capital was 12 or 13 %.That means they would have to get at least a 12 or 13 % return on any new acquisition just to break even.In my opinion the ill timed secondary has been coasting codi big time.Maybe this is 20-20 hindsight.I hope an acquisition in the not to distant future will correct this.