Why wouldnt they just cut the dividend as opposed to put themselves in a position where they struggle to meet capital ratios and have to dilute shareholders at these low prices? Cutting dividend saves them like $1billion or so a year and could help avoid dilution at these record low prices.
Let TA and its shareholders make some money and stop extracting all profits in the form of excessive rents, and you will have a TA stock that does well, happy shareholders, and no takeover noise... Portnoys are getting too greedy by completely squeezing TA dry to the point it is becoming a non-profit set up solely for the benefit of the Portnoys and cronies they are in bed with.
Share the wealth and avoid headaches of lawsuits, takeover, angry shareholders, etc...
Domestic company with no impact from Brexit. Financials have rallied back all of their pre-Brexit losses, but OMF fell off a cliff and isnt really coming back. Trading for less than 4 times forward earnings! US economy shows no signs of strain and is actually growing nicely, so why is this priced for a dooms day scenario?
if we don't have a major recession and simply have slow steady growth, this is priced insanely cheap. Most bankss trading for ~10X PE when interest rates around the world are going negative and with increased regulations and fines. OMF you get a company trading less than 4X and experiencing solid growth in the business. Insiders were buying at these levels, so is there a skeleton in the closet, or pessimism about the economy so high that it has crushed this stock? 3-4 yrs of steady economic growth, and the earnings pay for itself.
With the economy so strong and job creation, fears of borrowers suddenly not being able to pay debts are overblown. World may have issues, but US is doing remarkably well. I wouldnt be surprised to see defaults go down...
Anyone who wants a job can pretty much get one in today's environment, and wages are going up. Why will borrowers suddenly not be able to pay their loans???