At least they waited until the stock was at a 52 week high (almost) to raise equity. Now we know where the surplus CAD is going ... to pay distributions to the newly issued shares.GLTA.
Why not sell bonds?? The yield on the bonds would be less than the dividend? MGMT still gets the equity and owners don't get diluted.
I guess that explains the somber tone of the cc. I dont know why they feel the need to issue more shares though. They have a ton of $$$ available to them in the credit line (probably at a lower rate than the distribution). ..Probably getting some cash on hand for bonuses for a great year? They deserve it. Great run this stock has had this year! And to give to their companies for more growth. I am rambling at this point.
I'm disappointed they didn't announce it at the time of earnings report..
For the record, I am glad they did it at near a 52 week (multi-year) high. Always good to have some extra cash in case of a double dip.
I haven't been able to find any news about new shares? could you direct me to your source?
I received an email but IR but here is a PR:http://finance.yahoo.com/news/Compass-Diversified-Holdings-prnews-3926567722.html?x=0&.v=1