The company has asked for an increase in the the Pfd. shares outstanding....to be voted on at annual meeting. Company also stated the only reason that new Pfd. shares would be issued, "COMPANY IS EXPLORING THE FEASIBILITY OF MAKING AN OFFER TO THE EXISTING HOLDERS OF THE COMPANY'S COMMON STOCK TO EXCHANGE ALL OR A PORTION OF THEIR SHARES OF COMMON STOCK FOR A NEW SERIES OF PFD. STOCK........"
Guess we now know why common stock has started to move up......
<<"COMPANY IS EXPLORING THE FEASIBILITY OF MAKING AN OFFER TO THE EXISTING HOLDERS OF THE COMPANY'S COMMON STOCK TO EXCHANGE ALL OR A PORTION OF THEIR SHARES OF COMMON STOCK FOR A NEW SERIES OF PFD. STOCK........"
>> What would be the reason for this? Would hurt the current preferreds unless the new class were subordinate in which case it would make little difference. Would also make it more difficult for the company to reduce the dividend. Could this be self serving since mgmt owns common? Puzzled by this. -Z
Thank you for pointing out this proposal. IMHO this is a BAD idea because its effect would be to take away shareholder discretion in rejecting or accepting a merger or a buy-out. Management may even be contemplating a self-serving "going private" transaction. Why permanently give-up your future voting rights for nothing?
with the posters citing preferred or any other reason for the rise in share price of ltc. i think people are using the uncertainity in the overall market to move to a compant giving good dividend yield. evbemn mgt realizes someone may try to gobble them up-hence the shareholder rights plan. i see by the chart that a little resistance at 7 is the only thing that slows down its immediate rise to the 200 day moving average at @ 7 3/4. i think this will happen as soon as dividend is announced which should be out any day. my opinion only. best of luck to all