Last quarter or two they made the case that it was 6% or so. Let's be conservative and say 15%...still ridiculously overdone.
Agree with adelfig - market is clearly pricing in a higher offer coming down the pipe. End of day trading today was the tell. MWE is priced at about 7% over the deal value. Hope we hold it into Monday, or get that deal.
The issue is not the dividend growth over the next few years, its the growth angle which was already mentioned previously. If you look at cash flow, it's not growing...in fact it's contracting. Now if you compare the price/cash flow at something like 17x the stock is expensive.
Looking at dividend yield on a stand-alone basis is problematic. As laid out above, the stock is expensive on a cash flow basis - even given Kinder's leadership in the space.
Or more likely they are cognizant that the late stage, pre-IPO private market is inflated relative to the public markets and they are better off taking some money off the table prior to IPO.
When you go public before your have figured out how to scale profitably, you put your fate in the hands of 3rd parties.
That's what RocketFuel did and they are seeing the negative reprecussions to that decision here.
They may be a great company in the future and have figured everything out on how to get there, but until you start putting up real profits they expose themselves to investor games.
Still not worth converting imo. Why move down the cap structure to earn less yield from a decaying asset? What are you guys thinking anyways?
If Violin goes out at the high end of its range ($10), GSVC records a 66% gain on overall investment, that would be worth about $24MM to shareholders.
There are a couple of points here - first, as a later stage investor, GSVC is really playing the private/public valuation gap (if there is one). With FB, the private market had already whittled that gap to $0, or even negative. With lesser-known companies like Violin and Chegg I'd expect there to be a bigger opportunity.
On Twitter, one may be better off selling GSVC before the actual IPO.