Good comments. Probably neutral overall assuming cards are used for other purchases besides gas. DFS is growing their loan business so rising rates are likely to benefit margins going forward. In this regards, DFS is unlike V and MA that explains a part of the reason this is valued differently by Wall Street.
They announced that they are looking at strategic alternatives in regards to manor care. I read that as selling most if not all of the real estate. This will derisk the portfolio and give opportunity to invest in other than SNF like the ones manor care runs. IMO in 12 mos manor care will represent about 10% of the business or less. The bump in price comes when sell of manor care assets is announced. Still think there is room to fall more, but I'll continue to add. I'd be worried about HCP if there was weakness in other areas of their portfolio, but absent HCR it is running on all cylinders.
51% is alot but PDT doesn't pay anywhere near 51% in ROC. On average over 90% is not ROC but is income or gains. IMO the ROC when it is paid is the result of option activity.
You can go on the website for jh funds and see the breakdown or do it on cefconnect. Not much is ROC, this is something they started in last yr or so.
They are returning cash to shareholders. Mgt has been straight forward with share buybacks. They are buying shares at a discount to NAV. Not sure rising interest rates will drive NAV down as much of assets are in financials which should do better with rising rates. I do have concerns with their compensation but as long as they perform I'll continue to hold.
what unexpected revenue loss? The haven't even completed the deal yet. The deal will add to revenue and profit even without the customer. Today the price action was a gift to anyone looking to invest in LCI. Thank you Mr Market. Christmas came early.
I bought yesterday and doubled down today. Record does speak volumes. Generics are the goose that lays golden eggs. Demographics are the key. Older population, more generic drug demand.
can only do so much with the physical plant they have now, acquisition smooths future disruptions with one plant. Distribution will be somewhat higher (easy to be higher than zero) . Mgt is great operationally, not good at managing investor expectations. IMO they should state the annual distribution upfront (under promise) and pay a special distribution or repurchase shares at year end (over deliver).
The problem with one plant is that one time deals happen all the time if not this, then something else. That is why the acquisition is such a big deal for the future of this.
numbers were horrible but no distribution will send this to years lows. Could be a good opportunity to buy. Plant improvements will boost future results so bad in short term but prospects even better in the future.
I'm more concerned with dividend coverage, which just got much better than it otherwise would have been absent share buybacks. BV erosion is less than it otherwise would be, absent share buybacks. The possibility of a dividend cut just got alot smaller because of the share buybacks. I agree, year end selling may be robust, the question is whether or not mgt fully executes the authorized share repurchase plan. If they at least continue at half the current level, they will soak up a couple of million more shares thru year end - which will further increase dividend coverage, lessen BV erosion and provide investors a little more confidence that management is looking out for them (at least to the degree that what is good for management and their management fees is also good for shareholders).
Finally company is buying in a big way... going higher.
Our equity capital markets activity has been robust. During September of this year, the Company purchased 1,495,000 shares of its
common stock at an average price of $20.46. In October, and through October 16th, the Company has purchased 2,190,700 shares
of the Company’s common stock at an average price of $20.98. The Company purchased $76.6 million of shares in September and
October at an average price of $20.77.
generally agree. I think the decline in production of non opec producers will snowball from here. Crude storage decline have put the bottom in the oil price IMO. Iran production coming online will soften prices for a bit but likely won't retest lows. Iran production will offset decline in non opec production as well as much of the growth in demand.