Well insider buying at $7+, credit line just increased and $500+ million in cash, so must be some hidden positives somewhere here. in spite of "negative" disclosure. I am willing to take a risk at this price.
Sentiment: Strong Buy
If you look at recent (past 12 mo) insider buying and the prices management seems ro have more confidence and is taking the ride down with us. Of course the very negative article (probably a big short seller) is not helping today.
I have been moving to low beta stocks since the beginning of the year and like ETJ a lot as it is a CEF that is fully hedged against a down turn. I also look for cef's with substantial discounts to NAV whcih can also act as a hedge. Other monthly divvy's of a ocnservative nature are AWP, BUI, FULL NRO,JPW,PSEC, Qtr divvy APO, CHSCO & PDLI. I am also carrying substantial put options against the US$, the Dow and S&P as insurance. Hope this helps.
All stocks and especially medical related stocks getting trashed right now. Divvy as secure as any other REIT, but I prefer monthly divvy. No rush to buy thoughts I suspect bigger hit coming to the market as the summer progresses.
So stocks go up and stocks go down. They could have bought oil company stocks too - like a lot of funds, Hope it stupidly does go down so I can load up even cheaper.
Sentiment: Strong Buy
There cash flow statement does not show any substantial non-cash expenses? They do get a lot of advance payments for future services and have to put some of the money into trust, but this requires them to keep selling more advanced services all of the time to keep up the expanding need for cash to pay divvy and they keep borrowing money to pay it?. If you look at there two much larger competitors they show substantial profits and cash flow form operations, but this company sure does not.
All financials are confusing now days, but I have also observed many situations (especially MLP's) where management borrows money to pay increasing dividends depending on how many shares they have and how much money they want to make off of them. The company's business model seems made for the times, but i have also found cash flow statements do not lie - Madoff also had a great business model until ----, I think I will follow Zack's reco on this one and stay far away. There are too many solid dividend payers out there.
Sentiment: Strong Sell
Thanks Look at the cash flow statement - the divvy is all paid out of borrowings and stock sales - not earnings or cash flow from operations. How can they sustain this????
Have watched this company for a long time and they only show losses, have negative tangible assets and have never come close to having sufficient cash flow to pay their big dividend without borrowing and stock sales. How can this continue with the divvy increasing all of the time? Note Zack;s rates a strong sell - which looks right to me??? Why would I buy this stock?
K-1's are available on line. Pretty complicated because of their purchase of QR this year - don't forget to also deduct cost depletion and 59e expenditures from K-1 income per instructions..