Since this was announced on June 27 th the div of 40 cents was also priced in as well as the entire quarter. This means basically the BV is at least 1$ over conversion rate of 13.31 = 14.31 plus 40 cents for div = 14.71. I think the BV is higher last quarter it was over 17 but this report that came out after 4 pm from annaly basically tells us the BV is at least 14.71 . This stock will fly tomorrow big time . Shorts ouch !!!!!
Actually I found that the conversion rate probably has nothing to do with book value of the common stock. It is simply a fixed conversion rate, with a determined price of the common stock, maybe $18 or so at the time the bond was issued, then the price of the stock gets deducted (the word they use is adjusted) by roughly the dividend paid in common shares. You can notice that the price used for conversion decreases roughly by the dividend every quarter, even the common share book value fluctuated a bit every quarter.
The conversion rate has nothing to be cheered about for common shareholders..
All I know is that if you look at conv rates from previous quarters compared to BV they always seem to be about $1 less then BV so I'm extrapolating this info to this quarter . 13.31 conv rate plus $1 plus 40 cents div looking at 14.71 to me or there abouts. Plus possibility of getting into s and p 500 . Makes this a screaming buy at this price.
Our BV last quarter was $15.19 and these same notes converted at $13.71 with that BV of $15.19. Also, don't forget that we closed the CXS deal this quarter.
I would recommend going to the company's investor relations department and signing up for News, SEC filings, etc. The company is great about providing email news. I received this news from the company right after market's close, so it's very timely.
I can't say for certain what the BV is right now because the CXS deal closed, but it is easily North of $14 and well above the estimated BV the dooms-dayers were predicting.
Sorry BV last quarter was $15.19 .. And conversion note was 13.71 ..... Now the conv notes are 13.31111 only 40 cents less so I think it's safe to assume BV is in the high 14s for this quarter . Wow have we gone way too low in this panic selling. Wish I bought more this stock will pop to 14 tomorrow If we are right no?