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?