You are 100% off mark. Price targets are based upon long term business activities. ACAS is done and it would take years to liquidate ACAS for shareholders to receive FULL NAV. What is the time value of money? You take the deal now rather than all of the unknowns into the future. BTW lawyers routinely challenge EVERY buyout offer so nothing new or unique here.
You are 100% delusional. Price targets are based upon long term business activities. ACAS is done and it would take years to liquidate ACAS for shareholders to receive FULL NAV. What is the time value of money? You take the deal now rather than all of the unknowns into the future. BTW lawyers routinely challenge EVERY buyout offer so nothing new or unique here.
Maybe large investor wants out or its possible an ATM (at the money) sale of shares taking place. Fundamentals haven't changed or so we hope.
ACAS never restored a dividend choosing to de-BDC and accumulate NII so the true story of just how much was lost in structured debt.... over $5 of today's nav represents accumulated dividends since 2008.
No, the lesson of ACAS was that ACAS has been dead money for a very long time. Keep in mind that a large amount of nav represented years of unpaid dividends. If I recall ACAS was running at approximately $0.80 NII. Therefore seven years at $0.80 NII means about $5.60 at a minimum that represented nothing more than a recapture of all the losses ACAS took related to those 3 letter acronym structured products that went to poop in 2008/09.
It should have been clear that unless ACAS restored a divided the NAV gap would NEVER close because value investors were gambling on the nav gap closing but it would take income investors desiring a dividend to have any chance of closing that gap.
Wrong move. Cudos to Credit Suisse for outlining the possible impact of REX and explaining that TEP has ALL financing/equity in place to do deal without a public offering so failing to know that caused you to sell and miss this big move. CS gave readers of their reports eight days lead time to add to positions and I added another 100 shares premarket this morning.... wish there had been more shares available.
MCC, FSC, and PSEC need to be sold to stronger BDCs. PSEC willingly issuing hundreds of thousands of shares so far below NAV translates into ZERO credibility about their NAV/share. These three BDCs are in a negative investor feedback loop. ACAS was never able to recover and is now up for sale. These three will never recover positive investor sentiment having burned their investors with dividend cuts and the truth about how much more risk they have taken versus better and best of breed BDCs.
Hello, the yield is not real. MEP is now overpaying its distribution big time. MEP had a huge bump in ebitda in 2015 but 2016 projections are looking like they did in 2014. It looks like EEP set the stage to take MEP public at a very opportune moment hoping that dropdowns could paper over what is clearly a lousy portfolio of midstream assets. So the distribution overpayments will translate into a lower price for MEP and I expect EEP to sell to a private buyer or another midstream company that can make it fit into their asset map much better but do not look for a payday from sale.
Try $6-$7 NOT $10. Lawsuits over what Enbridge sold to the public will be coming anyway because when it sure looks like Enbridge played everyone for fools by selling really lousy assets to the public hoping follow on dropdowns would paper over just how bad those midstream assets included in the IPO really were.
It means you are a bag holder and should dump this POS ASAP.
Loss in value of pipeline systems received in dropdown. Enbridge has a lot of explaining to do at some point.... a 2/3 drop in ebitda in a 3 month period? Me thinks there is litigation here for misleading investors as to valuation at time of IPO.
Try again.... except the words "shareholders are SOL" needs to be substituted for your nonsensical statement that there will be any existing shareholders getting anything at all. Creditors best case will own LINE worst case full blown liquidation.
It is hard for investors who demand instant gratification to see out into the future. ETE will own Transco which is the premier pipeline running up the entire eastern area of the US. I would like to see the ETE family simplify by merging into one large entity like KMI. I think in time Kelsey Warren will see the wisdom in terms of lower cost of capital and necessary in order to fund future capex growth at rates that can be justified in terms of specific capex projects.
I know today's investor wants instant gratification from their investments. Two years from now we may be looking at ETE being the most powerful pipeline player in the US. This deal with WMB and getting Transco will be incredible. Keep in mind there are WMB assets that can be sold but must be held for eventual sale at better prices.
So if you cannot take the pain of near term dilution and possible distribution cut then you move on but sometimes great moves like acquiring WMB during the worst of times will pay off big for shareholders who actually remember something called the long term.
Looks like ETE found its path to $2+ billion.... question is will the WMB deal go thru or is this money to pay WMB to go away?
It may be that NYT article talking about how the former CFO tried to rework the WMB deal or trash the deal or negotiate a breakup fee w/o consent of CEO..... maybe