Discoglo: I'm not talking arbitrage-I'm talking money. My situation is probably different than others. I own all my ACAS shares in IRA's . I bought and added shares before the 33% stock dividend in 20099 at rock bottom prices and on the way up.. My current cash average cost is $2.9597. However being in an IRA the current selling price is my taxable cost basis. That will be my basis when I take RMD's from my IRA's as I currently do.. I have no taxable event when I sell as long as the money remains in the IRA or I buy ARCC. Over the past 2 years I have sold about 75% of the shares I either bought or received in the 33% stock dividend of 2009. So I have received my money back a few times over, over the years since 2009. the numbers for me are compelling to lock in the exchange at or about current levels for ACAS and ARCC for the following reasons
1) No taxable event to me on the exchange in the IRA
2) Doing the exchange will start giving me dividends starting June 30, 2016 and not when and if they decide to consummate the merger.
3) Exchanging all my ACAS shares for ARCC shares will give me about a 23.09% increase in total annual investment income I receive
4) Currently I spend (including taxes) 43.36% of my income on living expenses and the 56.44% of my income is dripped and/or reinvested in additional shares.
5) After I exchange my ACAS shares for ARCC shares I will spend approximately 35.23% of my investment income and will have about 64.77% investment income to drip and/or reinvest for income going forward.
In that position my only concern would be the continuation of the income stream without interruption with no need for capital gains and the tax obligation that goes with monetizing those gains.
if you accept the fact that the ARCC deal is the best you will get from ACAS management, or question if you will even get this deal considering the history of the ACAS deals promised in the recent past you might want to sell 1000 ACAS and replace it with 1082 ARCC you will receive $411.16 dividend income on June 30. If you reinvest the quarterly dividends they will approximately equal the possible additional capital receieved if the merger goes through.
In fact, replacing your ACAS shares with the dividend paying ARCC might be the correct move for many to consider.
I believe we all constantly re evaluate everyday the market is open. We either buy or sell or hold. All three of those options are decisions and re-evaluations all the time. Most of the time I do nothing but wait. That also is a re-evaluation.
I plan to hold the ACAS position and take the ARCC conversion. I also plan on adding the cash portion received, into additional ARCC shares. No tax problem . All ACAS shares were held in IRA's since the bottom before the the 33% stock dividend in 2009. In fact, I started a position in ARCC on monday on the ARCC price drop ($14.6799)
I also believe that the ARCC management has got to be better than the ACAS management I have been living with the past few years (There was a time earlier that I was a strong supporter of ACAS management's team. That's why I was in ACAS in the first place. But non anymore)
Investing my ACAS investment in ARCC should give me at current rates about a 21% increase in my total annual income stream. It will beef up the income in my IRA's and should pay a large portion of the RMD's I will be required to pay going forward. Obviously we will have to see how it works out. I'm still concerned with dealing with the ACAS management team and will not plan on counting my chickens until I see the money (and/or shares) safely tucked in my account
good luck to all
ICD: Welcome to EVA If you have the courage to do it---You could possibly make $1M with this company over the next few years. EVA is small enough with a $588 M market Cap that if are willing to grow your position as EVA grows it can probably be done.
Put all the lipstick you want on ACAS--And the Negotiated Merger--And ACAS Management that negotiated the merger and you still have 3 little pigs with lipstick.
This deal will change like every other convoluted pipedream ACAS has offered over the past few years. The only thing that will continue is management's stuffing themselves with bloated salaries, endless options and perks. That is why ACAS is being neglected by the market after this proposal.
Not exactly correct. ---
The cash is fixed-The Per Cent (.453) is fixed---- BUT THE PRICE OF ARCC IS NOT FIXED So the ratio is not fixed.
====get real and do the math .453 x 2.00 is a lot less than .453 x 15.00,
as the price go down the share of one suffers less than the share of the other.====
That's the way it works if there are no limits included in the price. And I don't see any limits included in the deal.
But try to be optimistic---If the ARCC price goes up to $50 you will get .453 X $50.
Deal imminent? There must have been 5-10 or more deals "Imminent" The only things imminent are the options they issue to themselves over the past few years and the new "imminent" deal they come up with.
The only advice I can give is don't spend the money until you see it in your account.
With the $Millions of dollars rolling in from the portfolio sales AND NOTHING DEFINITELY ANNOUNCED AS TO WHERE WE STAND---------
I wouldn't be surprised if Management announces a 10,000 for 1 Reverse split with no partial shares issued to get a lot of shares back at current or lower prices,
Until I see the money credited to my account the only thing that I remember is---THIS IS THE COMPANY THAT DECLARED A CASH DIVIDEND IN 2008 FOR OVER A DOLLAR A SHARE AND THEN CHANGED THEIR MIND AND CANCELLED IT.
++++ Sounds like a win win to me. If the assets are liquidated that only leaves management and their desks and a whole lot of cash, especially if they maintain sales in excess of NAV.++++
That sounds like a win win for management. I'm sorry but I don't see any obligation for them to give us any money as opposed to giving themselves more and more bonuses and perks and leave us holding the bag. I'm sorry, but I just don't believe them anymore.
It had a market cap of $750 B and everone was excited that it would double (MC $1.5T) or triple (MC $2.25T) . So far instead of doubleing or tripleing it has lost more than 33% to a current MC of $494B. Now the latest Trillion Talk is about AMZN which has to Triple from its current MV to reach ONE TRILLION DOLLARS.
Time will tell
I've been reducing my position over the past year or two. Sold over 75% of the total I had accumulated after the price collapse in 2009. It all was (is) in IRA's so it has been funding my RMD's and the balance after taxes has been re-deployed in income producing securities which was the purpose of my original investment in ACAS before 2008. My cost basis per remaining share is $2.9702. The last batch I sold for $15.99 on May 6. Still have a lot more to sell to re-deploy into income paying securities.
Enviva Partners, LP (EVA) (the “Partnership” or “we”) announced today that the board of directors of its general partner declared a quarterly distribution of $0.5100 per common and subordinated unit for the first quarter of 2016. The quarterly distribution will be paid Friday, May 27, 2016, to unitholders of record as of the close of business Monday, May 16, 2016.
“Durable operating cash flow growth driven principally by our acquisition of the Southampton plant in December underpins the significant increase in our quarterly distribution and represents the first step towards our previously announced full-year distribution guidance of at least $2.10 per unit, excluding the impact of potential acquisitions,” said John Keppler, Chairman and Chief Executive Officer.
====PS .. .even if we don't see a complete sale of ACAS, I think we see a sale of ACAM and probably ECAM mgmt. assets.====
And if we don't see a complete sale of ACAS and only parts like ACAM and ECAM are sold
WHO GETS THE MONEY? Does the sales proceeds remain in ACAS with MALON and his buddies continue drawing pay and issuing options to themselves and it's business as usual????????
Money: I only know nymarv through the message boards and don't have any info of whereabouts. Another missing person that appears to have disappeared is akebono.
stay well, friend.
I'm expecting EVA to announce another increased distribution in the next day or two. In Feb EVA increased the distribution from $0.44 to $0.46 and announced they expect to increase the 2016 Distribution TO AT LEAST $2.10. To reach the $2.10 projected goal would require EVA to increase the distribution approximately as follows:
1 st Qtr)May 2016 $0..48
2nd Qtr) Aug 2016 $0.51
3rd Qtr) Nov 2016 $0.54
3th Qtr) Feb 2017 $0.57===.48+.51+.54+ .57= $2.10
We will see shortly if they pay as guided.