NRF website tax status goes back to 2007. Remember, preferred carries out taxable income first. If one penny of common is taxable, then 100% of preferred is taxable.
Here's a hint: How many posts have I posted on the IV board since the filing of this 8-K?
DB's customers getting clobbered is irrelevant to this discussion.
Why extend?........try, try again to find my IV post.
DB is not going to lose money on this forward sale contract or the new extension. The formulas in the contract guarantee DB at least a modest profit counting the time value of money. DB initially borrowed AND SOLD about 57 million shares at the original offering price. DB kept the cash and NRF is obligated to issue shares to DB sufficient to enable DB to return borrowed shares at formula prices all of which are less than DB collected in the offering sale.
The subsequent issue price is set by a formula the variables of which are the federal funds rate, time to issue and dividends paid. Once the formula price is calculated, DB formerly paid 99.5%. Under this amendment extending the drop dead date to 11/30/15 DB will pay slightly less. See my post on IV.
Fidelity credited my cash dividend around 9:00 am edt on 8/28 but dated the payment 8/27.
If you are dripping at Fidelity, they buy drip shares 3 business days before the pay date. Fidelity did not know the payment would be late, so they bought Monday, 8/24 so it would settle on 8/27.
Here's the email I got from scco:
"Regarding your email, please be advised that our dividends payment date is today, as long as you have bought the shares until August 10, 2015.
"We have already transfer the corresponding funds, so please contact Fidelity tomorrow, in order to confirm that the dividend is credited in your account."
Contact Fidelity tomorrow? That sounds like an admission, imo, that they did not pay the transfer agent in time for it to be re-transmitted to Fidelity. Gross incompetence.
What I cannot understand is how and why did Fidelity not notice their error. Fidelity is the owner of record for all their customers' drip units combined. Fidelity is one unitholder to the drip administrator who sends Fidelity one lot of all drip units. Fidelity, in turn, allocates units to their customers, presumably in the ratio of drip units or drip dollars. When they finish with their internal allocation don't they notice they have units left over? The units allocated should equal units received. Can't they see the credits do not equal the debits?
Beats the hell outta me.
Today's dividend not credited to my Fidelity account as of 1:30 pm edt. I called Fidelity.
Fidelity has dividend on hold (not credited to my account) because they have not received cash from transfer agent. Fidelity said they called the transfer agent who said it had not received cash from scco but expected it before end of day.
Very poor form by scco. A big black eye on their administrative capability.
Called IR in Arizona. Recording: Not available so leave voice mail message. Sent email instead.
Had another telephone go-round with Fidelity Tuesday. They still didn't have it right. Damn, they are thick......when the internal math on their own entry is wrong. I had to recite the entire plan to them and told them to contact the drip administrator at etp to learn how to get it right.
They just posted the correct number of shares today.
As to holding stock: Every day that you could sell a stock you own but do not sell, you have made the decision to invest the after tax proceeds you could have had (by selling) into that stock. In other words, every hold on a trading day = a backdoor buy with the after tax proceeds.
Brings to mind a couple of sayings:
No guts, no glory.
When I was young, I had more guts than brains. Now it's the other way around.
Take your pick.
OR, buy half the amount you are thinking about buying. Why half? Because then you will be half right.
Well, the shorts have made lots of money this year, but not nearly as much as they lost from early 2012 to early this year in a nearly continuous rising price environment During this period, only the nimble and fast profited on short term dips. Otherwise they got creamed.
The pros don't get scared. I'm not scared. I am not thinking about selling at these prices. Both businesses are fundamentally sound as far as I can determine with lots and lots of educated, experienced work on these companies. Management has shot themselves in the foot with their excessive greed and lack of full transparency. It will take a long time to get it back even with successful operations. IMO, it will take unexpected and spectacular gains and/or deals to get it back in less than two years. Trust is easy to destroy. Once destroyed, it is very, very hard and usually long to rebuild.
In the meantime, the combined dividend (which, imo, will not be reduced unless forced by outside forces) is 2.00 annually on a combined price of around 30.50. That's a blended yield of 6.56% which is good enough for me to wait the greed blunder out.
Same-old, same-old: Big tute sellers drink coffee for a few minutes after the open to let the few buyers who can be found bid the price up a little bit.
Then starts the relentless selling where the pace of the fall and its depth is determined solely by the sellers' hurry to get out.
Major averages up about 2%, VNQ up over 1% and NRF down, again. NSAM = ditto.
That's what happens when management discloses obscenely excessive compensation, the shareholder votes are very high against it, and the media exposes the greed by name. Couple that with stepping away from transparency by dropping forward guidance and allowing only one hour between earnings release and the CC, and you get a crowd that loses trust in management. So they vote with their feet.
I don't think NRE selling at even triple the nrf multiple on cad will get the nrf group "back to even for the year" because it's cad per share is too small....20 cents (assuming a 1:1 spin ratio). At 9 times cad, 20 cents = 1.80.
At 27 times cad, 20 cents = 5.40, a 3.60 increase over current.
So, nrf at 14.00 + 3.60 = 17.60. Add nsam at 16.50 = 34.10 when the group was over 40 at the end of last year. NRE ain't gunna do it.
One thing to consider is the size of the market. I cannot quantify the difference, but I just know from Econ 101
that the market for transient rooms costing from 100 to 400 per night in a given area is larger than the market for rooms costing 250 to 400 per night. Again I cannot quantify it, but some of those renting private house rooms for 100 to 249 per night simply cannot or will not pay 250 to 400 for a hotel room. Thus these rentals are in addition to hotel rentals, not a takeaway from hotels.
The safety issue is also on both sides. Not only could your female friend rent to a rapist/ killer, an unsuspecting renter could have Charles Manson for a host. My wife would NEVER stay overnight in a house /apartment which was also occupied by a stranger even if I could bring my AR-15 along.
I suspect the airbnbs of the world are creating far more additional transient rentals than they are taking away rentals from hotels.
Only sell on your deathbed lots with a tax loss. Die holding the lots with a tax gain.
OR, transfer tax loss lots to your spouse before you die, thus preserving the built-in loss AND have spouse transfer gain lots to you just before you die, thus getting the step up in basis. No gain or loss is recognized on a transfer between spouses and basis carries over with no gift tax consequences.
Well, here's one drip where the Fidelity method (buying 3 business days before the pay date) turned out just horribly compared to the brokers who bought on Friday.
Drip cost per share at Fidelity where I drip in the small IRAs, all posted before the open on 8/21.
NRF: 15.6155, 15.6157, 15.6160
NSAM: 18.8306, 18.8317, 18.8327
The differences in the 3rd and 4th decimal places are simply rounding of the last penny for the last thousandths of a share.
Share your latest nrf/nsam drip cost per share on this thread. Name your broker, the date posted to your account and the cost per share to FOUR DECIMAL PLACES. I suspect Fidelity will be the goat. Which broker will be the champ?