Well, I have been holding onto this dog for a number of years but finally sold part of my position at $15.86.... bird in the hand you know. It has been dead money for just too long and I am basically at break even. If it gets anywhere near to $17.50 I will unload more and at least squeeze some profit out of it. I have put the proceeds to work immediately (HCP and PEGI). Best of luck all longs for another buck or two.
@sandy... I believe that no one thinks a dividend will be reinstated. This money will line the pockets of management.
Another I have been happy with is a business development company... MAIN. Buy when it dips under 30. And just started a position in PEGI a few weeks back.
Uhhhh how does one lose if one does not sell? A real gain vs. a paper loss? I'll take the real gain every day, thank you very much.
My take is that potential high liabilities will be bundled up into the spin-off, leaving HCP a more stable company with fewer potential losses. The spin off will be more speculative, but if things work out the spin off could be the bigger gainer. If not, the spin off will be the bigger looser. The investor will have to decide which is more likely.
Today's news... HCP Inc said it would spin off its skilled nursing and assisted living properties into an independent, publicly-traded real estate investment trust (REIT).
The company said on Monday that the spinoff would allow it to focus on core businesses - senior housing, life science properties and medical offices.
After the spinoff, HCP expects to have more than 860 properties, generating annual portfolio income of about $1.4 billion, the company said.
@kaltrops... I really like your tongue-in-cheek response. But recall, you can lead a horse to water... etc.