is it possible, at all, that management might be in there today buying up shares prior to the ex-div date, they'd save whatever they will pay out on each share they buy and could effectively be buying shares for about $2.50 or less...thoughts?
AHM and some other losses have put RAS in a pretty good position. So has its deferral of the 4Q2007 dividend into 2008. RAS had taxable earnings of 54 cents in 2Q, but only paid a 46 cent dividend (about 80%). GAAP earnings were much higher.
I know that this makes for a complex environment for RAS to do things in. It must be driving the accountants crazy. Still, is it better to pay taxes or dividends on profits from buying debt at a signficicant discount or to wait and have to pay more later. I'll go with the buy debt at a discount solution every time.
That was the end of 2Q, after they'd reserved the 2Q dividend.
Now we're at the end of 3Q, with a whole other quarter of earnings in hand. The dividend will presumably be paid from 4Q earnings, much as prior quarters have been. There should be additional cash that can be used for other things as well.
Trading on material non-public information?
That would really put the shish on the kebab.
I may be highly critical of their competence, but I don't for a minute think they are engaging in criminal behavior.
Buying or selling stock, after a dividend date/amount has been determined, but before it is made public, is about as big a no-no as there could be.
It would be a classic example of illegal insider trading.
I choose to believe that is not the reason for the delay.
Merger, buyout, de-REIT, govt. bailout, I could believe any of those, but not self-dealing. Forget the morality or legality: simply for practical reasons it makes no sense. How could such a violation escape notice?
One hopes, but they probably have too much information to trade without at least announcing the dividend. Blackout periods have real implications for management and the board of directors.