Director Clunet Lewis did a cashless (except income taxes) early exercise of all the options he had on sui stock. In each case, he sold enough shares to pay the strike price for each exercise.
He exercised on 1,500 at 32.63 and sold 843 at 58.05 to pay for the 1,500. These expired on 5/20/16, in about 1.5 years.
Also, 1,500 at 29.54 selling 763 to pay for them. These expired on 7/28/20.....somewhat less than 6 years from now.
Also, 1,500 at 37.35 selling 965 to pay for them. These expired 7/27/21.
So, he got 1,929 shares paid for entirely by the profit between 58.05 (the sell prices) and the strike prices (a cashless exercise). All he has to do now is pay income tax on 111,945, the spread between 58.05 and the strike prices.
Obviously, there is a reason or reasons which caused Lewis to conclude he was better off risking his money (shares) now and paying income taxes now than waiting for years with no money at risk.
By exercising now:
He begins collecting dividends.
He starts the holding period on the shares acquired.
He limits his tax hit to a known amount of income and a reasonably certain tax structure. This becomes compelling if he believes the price of the stock will be much higher (with an unknown tax system) as the options approach expiration.
Exercise of in the money options which are about to expire gives no hint on what the insider thinks of future stock prices. It's take your profit or lose it. Early exercise, especially VERY early exercise, to me is a bullish signal.
Yeah, but given nrf's track record on getting effectiveness in a timely manner (rxr supposed to be 3Q and still not effective), don't expect any fees until 4Q 2015. And remember, nsam only gets half a fee on co-sponsored deals. I estimate (until facts indicate otherwise) next to no fees in 2015, maybe 6 to 8 million in 2016 and 15 million in 2017 providing they sell all 1 billion by end of 2016.
Thank you.you described what will happen to griffin sshared which were NOT held in a brokerage account. I want to hear from someone whose griffin shares were held in a brokerage account, such as Schwab.
That just gave me an idea. I'll call Fidelity tomorrow and ask them what happened at Fidelity holding griffin shares. If I get a useful answer, will post here.
Thank you. It appears custodial accounts got overnight electronic shares credited, just like a traded stock that gets shares in a merger.
No. I got out of the kmi short green, but barely so. It was the price of oil drubbing which bailed me out, not my theory that kmp holders would dump en mass. It was a lousy call, another lesson to stick with what I know.
I was listening to Sandy Nelson music on Pandora when they played 40 miles. I just wanted to see who was old enough to remember such a classic. You, with RMDs, are certainly old enough, so what's your excuse for being feeble in the brain department?
Recent price action is par for the course. Eventually, fundamentals win. With nrf, it's eventual recognition as an equity reit, not a mortgage reit. With NSAM, it's when the show me crowd gets spoonfed and sees it's real.
8-K just filed with P&S agreements attached.
This is a roll-up into sui's partnership (an upreit) so sellers can defer some tax on gain.
Preferred partnership units being issued at 100 per unit and are convertible into 1.111 shares of common.
Thus, the conversion price is 90 per share.
Common units being issued at 61 per unit, convertible into common 1:1.
I note the P&S agreements (I read 2) require sellers to also contribute two golf courses, I presume for an additional price which I did not find disclosed.
Don't know what the going-in cap rate is, so have no opinion on whether this is bad, neutral or good for cad per share. I'd like to think Shiffman would not do a deal which is not accretive to per share, but have doubts on that score. It does make sui bigger.
The spinoff of nsam was announced on 12/10/13, after the close. Pre-split nrf closed 12/10 before announcement at 9.94. It closed on 12/11 at 11.95, up 20.22% on the announcement.
In a small IRA where I have held nrf since July, 2012 with no activity other than dripping at Fidelity, the value of the nrf position at the close on 12/10 before the announcement was 19,923. Since then, the only activity in this position has been the split/spin and dripping, so this is a theoretically perfect total return calculation dripping the Fidelity way.
Yesterday, nrf in this account closed at 19,030 and nsam closed at 21,864, a total of 40,894 from 19,923 one year earlier, a total return of 105.26%. I'd say the spinoff was a big success.
I'm happy in general and very happy with my reinvestment in nrf.
I was expecting you to know Duane Eddy as the performer of "40 Miles of Bad Road" in an instant. Too busy with your animals?
I get frustrated and impatient at times too. NRF has had these "spells" of languishing, downish price action for as long as I can remember. BUT, since 2012, nrf's total return has been in the neighborhood of 100% per year.
Investors, not traders or instant gratification freaks, have no complaints with this record.
Those who understand the fundamentals just have to be patient.
He became a director last June. Directors are "expected" (if not required) to own stock. Before today he owned none except giveaway shares. While certainly not a negative, I don't see it as much of a positive.
And he sold all 1,929 yesterday. He cashed in every one he got with this early exercise. No longer a positive signal to me. Now a slightly negative signal if any signal at all.