So this may be so obvious that it hasn't been said or I have missed it. But, it appears to me that we have a floor at around $6.65 or so which represents the offering price minus the .25 cent dividend. RSO is netting $6.65 or so (even less counting fees) from the offering and that's where we're about at today.
Already below that. I think your reasoning is sound but I think it is wrong. I think the market is getting tired of these endless stock offerings that promise to be accretive and turn out not to be. I hope that the recent offering, at this point I should call it a sale, of RSO shares for $6.90 does get leveraged into significantly higher earnings and thus dividends. However it seems the "market" whoever or whatever that is, is unimpressed. I think the opportunity to buy at even lower prices will present itself shortly. Keep some cash handy just in case. I think $6.50 is a good price. GLL Ken
Actually I think you can hold off on $6.50. At some point the market needs to have a serious blow-out correction, and all boats will sink. I don't know how long it will take, but in the meantime RSO stock is not exactly threatening to take off, is it? Yeah, it might climb above $7 as the next dividend accrues, but will it all of a sudden blow up and run out of range? Doubt it, I think one can afford to be very patient with new buys here.
Ken, I think you are definitely on to something there. Major investors want stability not frequent offerings. Even though they may be a good move. I too look to see $6.50 for the short term. Fred, does make good points as well but i do believe that your thoughts are a bit closer to the reality of it all. Continue to share with us whatever you see. Thanks seeds.bill.