Does the price adjust today after close of market? The price should be around $39 when trading opens tomorrow, is this correct ?
Too much of a gap up to be explained by speculation. There must be some kind of news, but I can't find any.
EPD is up as well, but by a more reasonable amount.
As I see it, this is what my interpretation is:
CHS has folks who presently hold their equity Participation certificates - which are similar to bonds or secured debt - and CHS pays interest on it.
CHS wants to retire those certificates. perhaps they pay a high % rate, or perhaps they are maturing - don't know.
Instead of paying cash from their account, CHS is going to "exchange" the newly issued CHSCO shares for these certificates - hence the no cash proceeds. It is an exchange.
This is essentially an exchange - perhaps the % rate of CHSCO is lower than the certificates, perhaps not. Don't know. But it has to be attractive enough for the holders to be willing to exchange their certificates for CHSCO.
Main points - there is NO DILUTION - as would be the case with common shares. CHSCO is a Preferred, and the income stream is fixed.
The exchange will add additional CHSCO shareholders who are existing customers, they are likely going to be strong holders and not hedge funds or flippers who sell at the first whiff of trouble.
The exchange does not lower EPS or other numbers because CHSCO is NOT common stock and therefore is not measured by criteria such as EPS, P/E, PEG, etc.
The guys who are selling now are obviously not strong holders and do not understand the nature of this exchange. They are selling first and asking questions later. Probably bought early on when CHSCO was in the $26-$27 range, and now locking in profits. Well, good for them; they will now be replaced by stronger holders who understand that this exchange is not necessarily bad for the company.
If the PPS goes below $29, I will be adding to my already full position.
Record date for the next KMR stock dividend is April 29, which means that the "ex-dividend" date is April 25. Would it be correct to expect that the share price will adjust down by $1.30 on that day, just the same as if it were paying out a cash dividend?
I read recently somewhere that LINN & LNCO management was considering monthly dividends instead of quarterly dividends. This would be a nice development for me as it would be more frequent payments, though lesser amount.
Any update on this ?
I sold my entire position at about $58 last week out of disappointment. But I am wondering if I should buy back in, or if the falling knife has still a ways to go.
If it goes to the very low '50s, I will probably buy a very small position - the yield at that time should be attractive, even if a deal never materializes.
Just about the worst possible time to announce this. But the market is not logical, and some may see this as a good buying opportunity.
I am being taken apart with my present cost basis well above $53, so this means I have to hunker down and sit it out for however long it takes to recover - which I think it will. But it could be a very long, long wait.
The wording of the news release appears to confirm that the present 6.6% senior notes - which is GEA - could be called using the proceeds of the new issue.
It is a reasonable and logical move for the company, after all, the new debt is about 160 basis points less than their obligation on the GEA notes. they will save a lot of money calling GEA.
Usually, there is a period of 30 days notice - about 13 cents of accrued interest. The most recent x-div date was 9/25, 8 days ago. So right now there is total 38 days accrued interest or about 18 cents. Each day they don't announce a call adds another 1/2 cent to the accrued interest.
If the price is above $25.19 tomorrow, you MIGHT want to sell depending on your guess as to when the call announcement will come. A bit of gambling guesswork here, I reckon.
Cannot find any news to explain the vicious drop for the past 2 weeks. Guess it's just folks taking profit after buying around $20.
Cramer press release this morning to sell KMI.
But looks like the Market is wise to his tricks, stock is up a few cents.
Maybe he's doing this so that in future he can try & claim he made a prescient sell call before the 58 million share release by the partners?
Are the sellers of the stock selling their holdings, or is this some kind of "special allocation" by KMI?
If they are selling what they own from buying in the open market, then it's really a case of simple profit taking. The amount of authorized and issued shares would not increase.
If this is some kind of special shares issued by KMI, then we do have dilution.
I cannot find out much information to make that determination. If anyone has more details, appreciate your sharing it here.
The next event that may trigger a call will be the Tier 1 capital change.
However, this requirement kicks in only on Jan 1 next year, so it is unlikely that MS will call now as the issue is trading at a discount to par.
It would be far better to use other available funds to buy in the open market - plus if they buy there is no accrued interest to be paid out.
Then they could call the balance outstanding next year.
We should see no call until 2013, so enjoy the October dividend.
The company has not yet called another of it's issues, PLS, which is a 7% coupon.
As long as this is not called, they will not call PLV.
I believe there will be lots of time to sell PLV as and when, or if, PLS is called.
Well, it's July 10, and no call for MSZ.
I do not see a need to sell at this price of $24.88. If there is a call, the price will immediately shoot up to just below par, or even above par because of the accrued interest.
The only risk is that of interest rates climbing, in which case MSZ will not be called, and may even go down. But in that event, I will hold and collect the 6.6% dividend. No real cause for concern, call or not.....
And most folks do not see the feds raising rates until at least 2013.
Let us hope they will also announce the dividend at that time.
Today COP announced its September dividend, I would expect PSX to be close behind.
I received the cash for the fractional shares in Vanguard. All is well.
Of course, all of us have lost many times the value of fractional shares in yesterdays and todays drops.
Let's hope the share price will stabilize soon - I am thinking about $64 for another small buy.
I, too, have heard "on the grapevine" that some of the major banks are calling in their highest yield TruPS.
Pretty sure that MS will participate in this, but MSZ is a lower yielding issue than some others, so we will likely see the issues of the high 6% and 7% being called first.
I think we have time left. And even if they are called, we will get about 30 days of notice - meaning accrued interest - plus a cap gain as most of us have bought it below par.
For me, I would not be too unhappy with a call.