thanks for your inputs ngp11111 and invest4divvie- nice if this board were a little more active. I am a retired income investor.
Doesn't look like it is going anywhere, that article did a lot of damage but it flushed out Gladstone on the CC about having to waive fees to maintain the divvie.
I agree a rebuttal would be in order. Maybe Gladstone will address it in the upcoming CC. I hope somebody asks about it.
I think you been looking at ledgers too long. The article clearly was an analysis of Good. not LAND. They explained how the companies are related, no probably about- obviously you did not read it or did not understand it. . They cited management conflicts of interest, substandard tenants and declining FFO per share. A real hatchet job.
maybe you are unaware of the fact that annuities are guaranteed by the issuing insurance company. If this is a "tax deferred annuity" as you say, who is the guarantor?
I bought this awhile back, unfortunately, at $24. Thought it would be a great income addition to my portfolio. I'm not mad, I am going to buy more now.
You couldn't be wrong. They were recently cited by the bank examiners as having too many bad loans, loose loan procedures, etc. etc. They are under a directive to make no more commercial loans. Basically, they run a sloppy, loosey goosey operation and it shows in the loan portfolio.
I averaged down a bit. About even now and with this stock sportng an 8% return, not a bad deal for a retiree looking to bolster the income aspect of the portfolio.
I would say it looks like:
1. No spring start
2. Big equity dilution at $1.50 or less to attract any interest.
3. Can't get the Industrial Revenue bonds backed by letter of credit so may have to give back the funds held in trust.
Bonds were closed in escrow to get around the deadline and money cannot be spent yet. Don't be fooled by cleverly worded PRs. The main obstacle (letter of credit) is still not done. Also, a lot more dilution. From a local newspaper:
"The company will still need a long-term letter of credit from its banker to back the bonds before it can spend any money on cobalt mine construction, but that process is going well, said Bill Scales, president of Formation Capital, USA in Salmon.
Formation Metals plans to finance the rest by issuing stock, Scales told The Challis Messenger."
From the quarterly report:
"The Company made demand to the holder of the convertible debenture to convert the balance, in
the amount of $7,000,000 into 4,666,666 fully paid non-assessable common shares. The demand
was made as the volume weighted average trading price per share of the common shares on the
TSX traded in excess of the 150% of the first term conversion price for 30 consecutive trading
days. These shares are held in trust, pending the outcome of a dispute by the holder of the
Company’s right to convert, and resolution of this issue is under discussion."