Actually I believe the Brazilian state that CIG operates in own about 50% of the stock of CIG. I don't think the divestment plan is aimed at CIG however.
The notes were convertible at about $9.84 into over 16 million shares.
Hedging by the note holders has probably capped the stock at about the $9.80. The refi with non convertible will reduce the fully diluted share count as well.
Seems positive to me.
TiO2 makers Tronox and Kronos are down even more on a percentage basis so I think something must be going on in that area.
1.) Stock price is down 50% over the last two years.
2.) Dividend has been cut twice and is now down 40%. from two years ago.
3.) Management compensation has increased 200% to 300% over the same time and they still want more.
4.) NAV dropping like a rock. Down more than 50%
5.) Investment losses on their opaque CLO investments that never seem to end.
6.) Management so inept they can't even get a pro forma permission for under NAV stock issue from shareholders.
7.) Stock has been mostly abandoned by institutions.
Cig has traditionally paid two semiannual dividends in June and December. They also pay another annual dividend in January. As a Brazilian company they are required to pay out half of their earnings as dividends. CIGs earnings vary greatly from year to year, the company does not pay any sort of regular dividend.
One of the reasons this board has so many spammers is that people respond to them.
1.) DO NOT REPLY TO A SPAMMER. They get paid extra for any reply even a negative one.
2.) DO NOT VOTE A SPAMMER DOWN. Again, they get paid for that since it shows that their message was read at least once.
Ignore them and they will go away eventually.
Company declared dividend of $R 2.51 per ADR ex dividend on April 15. That works out to about $.6825 per ADR before Brazil taxes or ADR fees.
This is about double the level of last years dividend.
Mexico polyethylene plant has also started production.
Most people in KCAP management have had their basic salary doubled or even tripled in the last 3 years as well.
The company's earnings report on their web site (I'd post a link but Yahoo doesn't allow) spells out their dividends for this year.. They will pay $R 200M in June and December and a special year end (actually paid early in 2017) of $R 633.9M . Assuming 838 million shares outstanding and current exchange rates that works out to:
June: $.066 per share
Dec $.066 per share
Yr end $143 per share
A total or 27.5 cents per share. That doesn't take into account Brazil taxes or the absurd ADR sponsor fees.
A yield of about 11.5 % at the current price.
If any of my conversions are wrong post a correction.
BGCP has traded at a discount ever since other trading companies like MF Global and Knights Cap blew up. BGCP seems like a good value at current dividend levels and PE but you have to realize that as a trading company it is always one rogue trader or computer error from disaster.
Own 80k at $1.40, big gain at $2.15 Might be a pull back the stock is getting ahead of itself here.
Congrats on your gain but you should hold for long term. I'm in for several years at least.
When the CLO is offered KCAP puts up a "first loss" reserve which absorbs losses on the portfolio. If the losses exceed the reserve KCAP can be forced to buy back the entire CLO and absorb all losses. This is how they hide leverage in their CLOs. The bonds are issued by companies and can go into default. By my count they have been force to liquidate 3 CLOs in the last 6 months.
Search through the annual report for subsequent events. On Feb. 29 another CLO was liquidated for a realized loss of over $6 million. This works out to a loss of about $0.15 already for the next quarter. One by one every CLO the company has issued is being forced into liquidation due to losses.
Why does the company never issue an 8K for these type of events?
There were some conversions a LONG time ago. The convert price is about $7.75 so no sane person would convert at this level. They will probably pay it off on March 15 or not at all.
Another factor depressing the stock is the meltdown in CLOs. The last quarter they were forced to buy back two CLOs due to loses. If more CLOs get pushed back it could destroy the company. Its interesting that the last two buybacks were not disclosed by 8k filings. There is an interesting article on Zero Hedge about CLOs. Basically a complete wipe out. KCAP has used opaque accounting to hid excess leverage in its CLO subsidiary.
HUN was almost sold back in 2006 for about $23 per share. It seems that the company has been perpetually for sale since then but the Huntsman family has an unrealistic view of its value. HUN seems to be a publicly owned company in name only.
If the company were sold that would mean that the Huntman family members currently ruining (opps! I mean running) the company would be out of a job.
1.) There is a large TiO2 plant coming on line in China soon. This was brought up by a caller. The fear seems to be that the Chinese will do the same thing to TiO2 manufactures that they have done to steel makers.
2.) They admitted that there are ongoing talks about spinning off the TiO2 business. They already have a joint venture with Cronos in Louisiana. Talk is cheap. Other manufacturers are already too highly leveraged to do a deal. There would be serious anti-trust problem given the small number of TiO2 companies in the business now. HUN has talked about a spin off for years.
3.) Buying Rockwood at the top of the TiO2 cycle and selling or spinning it off at the bottom is/was a stupid idea and there is no way they can spin it as being smart no matter how hard they try.
4.) They claim the Rockwood Euro operations are making money and it is now the US legacy TiO2 business that is dragging down earnings.
5.) Full year earnings should be flat at about $2 per share. Why does no one want to own HUN at 4 times earnings and 6% yield? I think there is a fear that the company will do a bad deal on the TiO2 spin off just to get rid of it. They sound sort of desperate on the CC.
Just my take on things.
They actually earned only 2 cents this quarter. The rest is non cash nonsense. I'll have to listen to conference call to see what they say but I think TiO2 prices are killing them. The Rockwood acquisition was a bone head move.