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Pimco Corporate & Income Opport Message Board

  • trial_this_one_112233 trial_this_one_112233 May 20, 2013 2:06 PM Flag

    Possible reason why the stock is dropping

    If you review the latest financial results, one item caught my eye.

    Undistributed (Overdistributed) Net
    Investment Income Per Common Share (c) $(0.1399) $0.208

    I've held PTY for several years now. Every year, around Nov / Dec, they announce a distribution, which is usually pretty significant.

    If we have Overdistributions, that might be an indication for a dividend reduction, possibly by $0.01 to $0.02 cents a month and no chance of a year-end distribution.

    Thoughts anyone??

    Sentiment: Buy

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    • Laws of Convergence and Divergence to start with.

      100lbs of poop will not fit in a 50lb bag?

      People are waking up to the fact that paying a premium for the price does not help the company, the company never even sees the share. Start with that.....

      There is something called the fundamental price....

    • Very good analysis of the financials and a reasonable conclusion trial, however sometimes one must blend in certain non financial bits of data to get to the real truth. This is where the third leg of the stool makes its presence felt, namely "News". According to what I heard, Stockton CA recently went BK. That's it. But it so happens that 1.88% of PTY's portfolio is in Stockton CA bonds. You know what that means right? Stockton defaults, PTY doesn't get paid. NAV goes down. PPS follows. I don't know but I doubt Pimco can even sell the Stockton bonds even if they could find a buyer.

14.66-0.05(-0.34%)Jul 25 4:02 PMEDT