That is some weird stuff. Within minutes, they announced a 32-cent quarterly cash dividend, the distribution of the Silver Bay shares, a Warrant adjustment, and a 19% SPO.
The cash div is kind of weak, as it amounts to only 9.2% yield. But coming immediately after SPO shares are sold, it's going to be a massive draw. As is the Silver Bay distribution. The shares are only off by 23 cents (1.7%) after hours.
The SPO will commence in the morning, and ex-div on the cash dividend is March 29 (Friday), if record date is April 2 (Tuesday). The record date for the share distribution is the same, but I don't know if there's a rule that puts ex-div for a share distribution at record-minus-2 as there is for cash dividends; though you'd think they'd be explicit if that was not the case. The rule on cash divs is if the div is more than 25% of the company's share price, the ex-div is the day after the pay-date (not record date, pay date). Since this share distribution is probably more than 25% of the company's value...or is it? No way to tell, and maybe the point of the SPO was to pump up the core company's value and reduce that percentage... No way to tell.
Can't imagine being a warrant holder trying to handicap where the value will end up, either. This is why I avoid exotic instruments. I hate having to pay an accountant just to tell me what the eff I own.
So far TWO has been my best mREIT investment. Not that it had anything to do with my investment expertise. I just got lucky that I took the suggestion to buy it from an off topic post on this MB. It has risen well above book value though. So one could not say they were blindsided if it takes a dip. All the warning signs are there. However if the book values goes up in their next quarterly report then there may be nothing to be concerned about.
TWO has received erroneous support from the media reporting northwards of 16% yield("Best yield in mReits...etc.,etc.) Flat out wrong as they were using .55 as a forward dividend, which included the end of year special dividend, deceiving the masses who artificially inflated the PPS beyond BV.
Watch now as reality and the disappointed which accompanies the same take over. Might be a pop to EX, but perhaps a great opportunity afterwards. EX will be Mar 28th as Friday, the 29th, the markets are closed for Good Friday.