S&P is going to split reits out of the financial sector beginning in August, 2016 (I think from dimming memory).
There will be 11 sectors instead of today's 10. However, I think the new reit sector will be mostly a carve out from the financial sector where current members will mostly fill the new reit sector. If they rebalance the entire index, reits may get a slightly larger share than today, but it will be nowhere near big enough to allow nrf in, imo.
Read more carefully. I said 2Q will be a handy beat. 1Q will only be fair as the increase from the griffin shares will be partially offset by a decrease in nontraded revenue. Lieberman blew getting the Healthcare follow-on declared effective in time. Thus there were no Healthcare sales for almost 2 months. Lots of griffin proceeds went elsewhere because Lieberman didn't get the sec work done on time.
Well, since you subtracted the last dividend, you should subtract about 37 cents worth of the next dividend from today's price.
Worry not, though. The first step to adding nrf to MSCI's equity reit index is done. Next on 5/12 is the announcement, effective for 6/1 trading. DB estimates this will require a net buy of 23 million shares by funds and etfs which track the index.
Earnings on 5/8. Maybe a little dividend increase (not more than 2 cents) announced after close on 5/7. Then the index announcement on 5/12. Price could easily be over 20 on 5/13, imo. I ain't even thinkin about selling one share. At 20 with the current dividend, the yield is exactly 8%, still much too high. Maybe when the market starts recognizing nrf as an equity reit the yield will come down via price going up. Addition to equity reit indexes should speed the education process.
Not only can you vote your shares, you can email the two big proxy advisory services that the tutes have to pay attention to. Here's a clip from an article I linked on the IV board.
"Meanwhile, legislation including "say on pay" has increased the power of proxy advisory firms, especially the two biggest, Institutional Shareholder Services (ISS) and Glass Lewis and Co. Like the bond rating agencies of the last decade, these firms have been granted significant influence by the SEC in the shaping of corporate governance policies for all U.S. public companies."
Just google the two firms, go to their websites, use the "contact" function, and ask them to look hard at the compensation which you feel is excessive and to recommending tutes vote against it.
We retails are a pi$$hole in the snow to be ignored by management. But if the big proxy advisory house advise the tutes to vote negative, THAT's clout.
Hamo got 60.3 million from nrf (after undisclosed discounts applied to the stock) and 14.3 million from nsam.
Plus, he had 46.2 million dollars in unvested nsam shares all of which were awarded in 2014.
They did stock for stock in the completion of Minera Mexico and it cost them 2 billion. Somehow the Ireland office will fit in but I don't know how. In fact I would rather take Grupo shares than cash if it were a tax deferred merger.
I don't blame them for doing so, but they are going to cause scco to buy back as many shares as they can at the market before they have to offer a premium in the endgame.
Forgot to add: This Q dividend = 80.5 million vs 100.0 million same Q last year.
Look at the ratio...1Q 2014....100.0 + 52.5 = 152.5 total payout. Dividend = 65.6% of total.
This year 1Q 2015................. 80.5 + 370.1 = 450.6 total. Dividend = 17.9% of total.
Notice a little acceleration and shift in mix?
The forceout is coming.
In 1Q scco spent 370.1 million buying back 13.1 million shares (average = 28.25). These are approximations due to rounding. Actual will be in 10-Q.
BTW, in money....370.1 million this Q vs 52.5 million same Q last year. Up over 7 times. I'd call that an acceleration. Less than 800 million outstanding at 3/31/15.
From scco earnings release: " Operating cash costii per pound of copper before by-product credits was $1.66 in 1Q15, a 9.3% improvement,
compared to 1Q14. Operating cash cost per pound of copper net of by-product credits was $0.98 in 1Q15"
SCCO's GROSS cost is only 2 cents higher than the bloated pig's NET cost per pound. On net, it's 1.64 vs .98.
Yeah, yeah, I know they calculate differently. FCX leaves out administrative cost, among others.
They both produce all they can and sell all they produce at a price set by the world market. The only thing left to profit is cost to produce. 66 cents per pound in scco's pocket is HUGE.
Of course, the stronger the balance sheet, the cheaper the borrowing (within market limits). Plus the market has liked the deleveraging as the yield has dropped dramatically despite one paltry dividend increase in 10 years. I don't have a problem with it because the price has increased so much.
For the past 10 years I've built a yield portfolio because we live on dividends. But now our dividends exceed our normal spending by so much I've been moving toward growth stock. All of my sui is in the taxable account with huge gains so it ain't goin anywhere unless something really bad happens to sui. To me, the holding is a slow gro annuity. I have no problem with cash flow reducing debt instead of increasing dividends.
The people who are there now via sub management contracts. They either make budget and standards or the in house managers are replaced.
It's restricted in name only. The deferred vesting is an accounting trick to discount the value of the stock for financial statement and proxy purposes. Read their employment contracts and the only way they forfeit is to quit and compete or get fired "for cause" (like a felony).
Hamo has $46 million of unvested nsam shares......all granted this year.....that are not included in the 14 million compensation reported in the proxy statement. So he got 60 million from nsam this year.
Thanks for your effort to bring facts to the board.
This acquisition was disclosed in a prospectus supplement on 4/15. Nevertheless, 640 million x 2.25% acquisition fee = another 14.4 million in 2Q fees for nsam. This on top of nsam's 40% share of nrf 875 million acquisition to close in 2Q. 875 x 40% = 350 million nsam share x 2.25% = 7.875 million acquisition fee.
This is why NSAM is going to have a great 2Q earnings report. If NSAM has half a marketing brain it will give forward guidance at 5/8 CC and in new presentation slides.
Sentiment: Strong Buy
Enough of this giveaway stock (which they discount for financial statement and proxy purposes by restrictions, deferred vesting and so called performance hurdles).
Go back to options. Here's an option for 1 million shares. The strike price is today's market close. You have 10 years to exercise the options and you must exercise within 30 days of ceasing employment or they lapse.
Oh, and by the way, the strike price increases by 1.5% per quarter minus the dividend paid that quarter. In this way, if you don't get at least 6% per year total return for the shareholders, your options are worthless. Give the shareholders 30% per year and your options will make you fabulously wealthy.
Less than 6% per year to shareholders and you're fired. Give us 6% and you've earned nothing but your very high salary. Only when you give us MORE than 6% per year do your options BEGIN to pay off.
This is the way it should be at EVERY public company.
Yesterday's dividend announcement......."Southern Copper Corporation is one of the largest integrated copper producers in the world and has the largest
copper reserves of the industry. We are a NYSE and Lima Stock Exchange listed company that is 86.1% owned byGrupo Mexico,
In 4/17 release it was 86%.
Go to IV board for opening post on proxy advisory services. It links to an article that names the two proxy advisory companies. Then go to their website and email them from "contact us".
Have not sold any flippers lately. Selloff way, way overdone. Will take time to repair damage but I have plenty of time. I intend to milk that buy for another 10% or so, which may take until 2Q report in Aug. 2Q results will be great due to acquisition fees.
Depends on lots of things including whether you need the cash to pay bills, your tax situation (income and estate), your kids and grandkids's situation, if any.
Question cannot be properly answered on a message board by anyone, no matter how expert.