PSEC is also planning a restructuring. No details yet buy something is in the works.
Sandy; There are a million different ways restructurings can be accomplished. Be assured If they do it-It will be in the best interest of the company and management. We have to hope that management owns enough shares and options that their interests are aligned with us, the "unwashed shareholders"
===The only place I have come out is selling puts and covered calls. ====
I just sit and collect the quarterly distributions. So far they are still going up each quarter. It has not been dead money IMHO. In fact the last units I bought were pretty cheap. And the distribution per unit was the same as more expensive units. So I got more units and more income for the same amount of capital.
=== Semple has built a big company that can and will rebound after pricing move up, ===
And when it rebounds you will be happy you still own MWE. And don't forget the 5.5% distributions you get each year while you wait with "the dead money invested here"
I really hate to say this--But it is getting to look more and more like ACAS is a Ponzi Scheme. What does ACAS own?. Did ACAS make 21% PER YEAR for the ACAS SHAREHOLDERS How much money did we invest and how much money did we receive IN ACAS. Those are simple questions and management should tell us the numbers. Right now the restructurings and spin offs are just a BIG WET DREAM and nothing else.
Jeffy: when I asked "What does ACAS own?" I meant does ACAS own Mirion? Somewhere in the past ACAS bought the pieces that became Mirion at "X" price. Then it was sold at "Y" price to ACAM. Did ACAS make the 21% annual profit they touted in the press release? I don't think so. On the time of sale from ACAS to ACAM does anyone believe that the management of ACAS was not aware of the negotiations of ACAM management for the sale of Mirion? That's just not possible because THEY ARE BASICALLY THE SAME DAMN MANAGEMENT. So what did ACAS get for MIRION? WHAT DID THE ACAS SHAREHOLDERS GET FOR THE SUPERB MANAGEMENT TEAM that we are paying for 3 different times to work for us. In plain English the hell with ACAM. I am an ACAS shareholder and I'm paying management to work for me and ACAS not ACAM. If they want to work for ACAM then Resign from ACAS and go elsewhere. So we can find managers that will work for ACAS and the ACAS shareholders.
They have a conflict of interest at the present time, and so far it appears we as ACAS shareholders are getting ripped off
Hi Jeffy: No need to apologize.
You said it best when you said==== Which they have $1.4 Billion of companies they wholly own.====
I'm asking--What's the big deal to ACAS if they give away the companies they own to ACAM while negotiations are on the table for a sale of Avalon and Mirion at much higher prices to ACAM without any profits to ACAS. We just gave Malon Wilkus $7 M in options to work for us. I'm sorry but I don't see that scenario as working for ACAS or being in the best interests of ACAS and/or the ACAS shareholders.
---is $9.72. The closing price today April 9 2015 was $10.52. The Drip price on reinvested shares should be 95% of the $10.52 or $9.994 per share which is a discount of $0.526 per share .
Before you get cuddly and that warm fuzzy feeling about ACAS and their Management, take a look at Macquarie Infrastructure Co (MIC-NYSE) that also had a near-death experience, similar to ACAS when they collapsed to $0.80 in May 2009 eliminated their dividend in 2009--10. They reinstated the dividend in 2011 and have paid the following since then
The first quarter 2015 MIC paid $1.02 and management's has a stated goal of a 14% increase in distribution in 2015 and another 14% in 2016.
MIC Share price closed yesterday at $82.70. Thats up 103.375 Times in 6 years
The CEO Mr Hook receives $3.64 M in pay and the CFO Mr Weintraub receives $691 K in pay.
they are singing the song.But the song they are now singing is not in the Hymn book they gave me when I bought ACAS years ago.
If it is not a tax-free event-by definition it is a taxable event and that becomes a sale which will trigger taxes to be paid leaving less value in people's portfolio. Then it appears we will also have more management (3 Public Companies) and more compensation to three managements. The 3 managements might be the same personal with 3 "New" hats each to wear when they show up at the 3 different paymasters each week for their checks they will receive from their 3 new employers.
To sum up-- it appears we will pay taxes on our investment so we have a lesser amount of money then we will slice up the balance remaining into 3 smaller pieces, inject more expenses to manage the 3 public companies leaving still less cash or assets and then we will have to hope and pray that Mr Market will favor us with a higher valuation than we have now.
Even Houdini would have loved to see this.
Thanks-I'm listening-Now suppose I don't want to sell Where do I stand if part of the spin-off is taxable? And what could I reasonably expect for the long wait from 2009 in the form of dividends (distributions?).
I know we've gone through this at least 100 times but I'm getting older and it would be nicer if management did something other than futz around telling us what they will do. I'd prefer they do it and we move forward or whatever from there.
NMB: Thanks for the reply. What's not clear is Right now if I have 100 shares of ACAS trading at $15 with a NAV of $20 After the split-spinoff in your 1/5-1/5-3/5 example I would have the same NAV and the share price (to start) at the same of the split-spinoff. My question is Why is therea a tax due if I didn't receive any additional value? I have the same I started with only it's divided into 3 unequal pieces.
Hi Foxy: And so do I., when the SP is below NAV as it is in ACAS's case. I just read a negative article in Barron's from a non-staff member Morris Propp entitled The Buffett Loophole (Available on google) and IMHO required reading for wealth building investors (like me-NMB- You and others here)
I believe (As Warren Buffett does) that deferral of taxes as legally allowed by law can and should be a major tool in reaching our goal
Billings Learned Hand (January 27, 1872 – August 18, 1961), usually called simply Learned Hand, was an American judge famous as an avid supporter of free speech and for applying economic reasoning to American tort law. He is noted as one of the most influential American judges to have never actually served on the Supreme Court of the United States.
Famous Quote from Judge Learned Hand
"Anyone may arrange his affairs so that his taxes shall be as low as
possible; he is not bound to choose that pattern which best pays the
treasury. There is not even a patriotic duty to increase one's taxes.
Over and over again the Courts have said that there is nothing sinister
in so arranging affairs as to keep taxes as low as possible. Everyone
does it, rich and poor alike and all do right, for nobody owes any
public duty to pay more than the law demands."
I vote for the buybacks of ACAS shares while they can be bought by ACAS below NAV down to the last 3 shares if necessary-one for me one for Foxy and one for NMB
Zeit: the main difference IMO is all the buybacks are NON-TAXABLE events for me and therefor benefit me the most. Taxable dividend events are not as beneficial for me because a portion gets siphoned off to the Fed and State.
i'm in a good mood this morning so I am willing to add you and Jeffy to make a Final 5 with one ACAS share each buyback goal. .
Going from memory at the time---MWE made a JV/Sale with SLMP where they bought/took over the the ownership of some connecting pipe lines from customer's wells to MWE processing plants. MWE got money and SLMP got the right and obligation to hook up new wells. It appeared at the time to be a cost saving measure for MWE The pipes were connected to MWE processing plants and MWE processed gas.SLMP received a part of the fee for building connecting and maintaining the pipes.
As expected dripped shares arrived this AM before market opening and it was at the discounted price of $9.994 as I expected. Next expected event for DNP is X-Div day for the next dividend which will be April 28, 2015 which is 14 days from today. It will be payable May 11, 2015 and dripped shortly thereafter.
In the last year or two DNP management invested about 19% of the assets in MLP's. Dividends from MLP's are considered ROC distributions and not taxed upon receipt but are tax deferred. I personally would prefer that all dividends were classified as tax deferred distributions. I can't eat or invest the approximate 20% I would have to pay the IRS and State governments if the distributions were taxable. But I can eat or grow my portfolio value and/or increase the income if it is tax sheltered if I defer the taxability of the distribution. If the security continues to perform there is no reason to sell and pay capital gains on the sale. DNP has paid the distribution every month for the past 28 through the good-the bad and the ugly without fail. The manager has been running DNP for the past 18 years. Why would you want to sell and pay taxes?
Relax and wait for April 28, 2015 which is the next X-Div date and make more money
Hi Witikind: As I also said the next event by DNP management is April 28, 2015 when DNP goes X-Dividend again bringing you another $0.065 per share and another up to 5% discount per share.
The secret to making money with DNP is ---DON'T DO ANYTHING JUST WAIT
Back in the 1960's Warren Buffett took over Berkshire Hathaway the stock price was around $20 Today it is $214,580 per share. Never had a split or a dividend in all the years since. A split won't drive the price up. Good steady growth, good management and a favorable market will. I've been here since 2004 and I am satisfied with the progress so far.
It's not a coincidence. Today (4/17/2015) the DOW is down over 300 points again and at the present time DNP is up $0.02.
It is definitely being considered a Safe Haven by investors in these troublesome times.