Short sales of nsam were 280K today out of reported volume of 433K....an astounding 64.6%.
Total volume today, including non-reporting exchanges, was 656K......so 280 (at a minimum) / 656 = 42.7% of total volume today was sold short.
This is incredible. Despite a massive short effort, nsam closed up 3 cents today. Put another way, imagine what the increase would have been but for the massive short effort.
This kind of shorting cannot last too long. Today won't show in tomorrow's short interest report, the first with nsam as a stand-alone.
Speak of the devil:
NEW YORK, July 23, 2014 /PRNewswire/ -- NorthStar Realty Finance Corp. (NYSE: NRF) today announced that it will host a conference call to discuss second quarter 2014 financial results on Thursday, August 7, 2014 at 9:00 a.m. Eastern.
Boring day in nrf/nsam, as yesterday. Less than 1% between hod and lod for nrf.......1.28% for nsam, very low for nsam. Can't make flip and dinner money without volatility. Very low volumes.....looks like most are settled in waiting for next news.
Speaking of next news, if we don't get an announcement very soon of an 8/1 earnings release date, my thinking will change to 8/8. If so, no surprise as the 6/30 closing is important to get the nsam spin as precise as possible. Extra work = more time needed and number of hands and heads involved is finite.
Don't hold your breath, Wilson Silence = no deal. You will only get an "update" if a deal is made. Hamo walked.
He is not the type to engage in endless negotiations. Fish or cut bait. Agree on dealbreakers first. No need to waste time on the finer points when the big ones have not been agreed upon. That possible deal is long in the past.
I checked my accounts at Fidelity and treatment of dividends is unchanged. I drip in the small IRAs and take cash in the big accounts.
Both securities are new additions to your accounts.....nrf because it is a new cusip. Old nrf merged into nrfc sub-reit which then changed its name to the same as the old nrf. So the nrf you just got in exchange for old nrf is a new addition to your account, as is nsam.
When you change the treatment of a dividend, you have an additional option at the bottom of the page to instruct Fidelity on all future new positions in the account. This sets a default. It appears your default on new positions is set to cash even though you were dripping old nrf.
Collected 154.3 million thru 7/21 vs 144.8 thru 7/8......so, 9.5 million in 13 days, an average of .731 per day.
Only fair.....maybe entering the summer doldrums. People on vacation ain't sitting with registered reps peddling nontraded reits.
MS just reported owning 9.341 million shares of NRF.....5.1%.
At 3/31 it owned 12.6 million pre split shares which equates to 6.3 million post split.
So, MS added 3 million nrf since 3/31.
No similar report on NSAM as of a few minutes ago.
Once 6/30 ownership is reported by 8/15 we can determine if big MS addition came after spin.
Ameritrade has allocated basis.....52.2331% to NSAM and 47.7669% to NRF.
Fidelity allocated 53.3333% to NSAM and 46.6667% to NRF.
I know Fidelity allocated basis in the ratio of 7/1 closing prices....19.20 for NSAM and 16.80 for nrf. Total = 36.00 so 19.20 / 36.00 = 53.3333%.
I do not know how Ameritrade allocated basis and, at this point, am too lazy to play with 7/1 numbers to try to replicate.
If your broker has allocated basis (other than 100% to one or the other), please name the broker here and the percentage TO 4 DECIMAL PLACES allocated to each company.
Never look back on a flip. Take the gain, whatever it is. If that's your bargain, then that is that.
No, did not sell nrf lot of 7/16. Waiting for fat dividend unless a spike takes me away. Gotta be well over 17 to shake me from this lot.
Just got off the phone with Fidelity. I asked why Ameritrade posted cash for fractions last Wed and Fidelity still had not done so.
Answer: The fractions are in accounts which drip, so the transfer agent (of the reverse split) sent fractions to Fidelity.
BUT, I have fractions in an IRA which does not drip and they are still there too.
Situation in Ameritrade account and small IRA at Fidelity is identical.....both drip dividends. AMTD posted cash for those fractions, but Fidelity says I got fractions and will not be getting cash. Fine with me. Fractions means less bookkeeping for me.
Steadfast just filed on NRF. They own just shy of 11 million or 5.8% of post reverse shares.
Same comment from 3/31 report.....split resulted in 5.45 million nrf, so steadfast has purchased another 5.5 million (from 3/31 filing).
Thank goodness for today's rebound. As of yesterday's close, combined was down about 3.5%.
NRF closed last Fri at 17.07 to 16.86 today.....down 1.33%.
NSAM closed last Fri at 19.95 to 19.32 today......down 3.16%.
No doubt in my mind the lack of a Griffin deal did a lot more to nsam than nrf, as it should since such a deal would have nsam grow substantially faster than nrf.
Combined on a weighted basis, one share of each added together declined 2.27%. Combined is easy for me to calculate since I have two accounts with nothing but an equal number of each co's stock. Just calculate the pct change in dollar value of the accounts.
Next week should bring the announcement of earnings release date, which I expect will be Aug 1.
BTW, I think Financial Times (FT) has a mole inside nrf. It was first to report ARCP talks and first to report Griffin.
How else does FT be first to break the news (rumor).
Not taking over 1,300 in a 2-day flip here. Holding for 50 cent aug dividend unless, of course, we get a big spike to mid 17s.
Yesterday broke the downward momo which I think came from silence on Griffin deal which means no deal. Just temporary, imo. If not Griffin, then something else. Don't know when, but know it is coming.
It's really very simple. Hamo is not going to reduce the dividend.
NSAM was included in nrf consolidated for all of 1Q and 2Q. NRF paid a split-adjusted 50 cent dividend in May. Why anyone could imagine a reduction in August is beyond me. It ain't gunna happen.
Just bought a flip lot at 16.4815. If wrong, will hold for very nice yield: Aug = 50 cents /16.4815 = 3.0337% x 4 to annualize = 12.13%, I suspect all tax deferred roc.
Beginning in Nov, 36 x 4 = 1.44 / 16.4815 = 8.737%, which is just fine with me.
No such thing as a backdated follow-on.
Offering, if there is one, will be announced 8/4 after close with a trade date of 8/5. That gives buyers the dividend with 8/6 as the ex date. 8/7 ex would not surprise me giving a day of wiggle room to presell the offering.
Also, 2Q dividend will be 50 cents, not 36.
No action letters filed on sec website. Paper documents effective 6/30, so nrf and nsam off the hook for wi and public trading of nsam without registration statement being declared effective.