They will NEVER pay another dividend. Best case is that they do a merger and offer preferred holders 5- 10 cents on the dollar.
Article will be public in a few day or check out the Panick Report in the Seeking Alpha Marketplace to read it ahead of the crowd.
First part of a locked article out on Seeking Alpha for Panick Value Research Report subscribers.
Ignore The Nuisance Lawsuits And Take The Safe 11.7% Yield From Resource Capital Preferred Stock C
Oct 27 2:46 PM (Updated on Oct 27 3:11 PM)•RSO•Comment!
Disclosure: I am/we are long RSO, RSO-PC. (More...)
RSO-PC now yields 11.7% and the preferred dividend coverage is 4.3X.
RSO preferred issues have lagged the rally in the common stock and bond issues.
The preferred stock sell off appears related to class action lawsuit headlines.
Even using a worst case scenario, class action lawsuits are not material to preferred holders.
A new high yield article is out by the same author. Not yet public. Available to Panick Vale Research Report subscribers in the Seeking Alpha Marketplace
A 12.7% Tax Advantaged Yield As AdCare Health Transitions To A REIT Model.
Oct 24 7:41 PM (Updated on Oct 24 8:31 PM)•ADK•3 Comments
Disclosure: I am/we are long ADK-PA. (More...)
Risk is being reduced as ADK transitions from operating senior healthcare facilities to a property leasing model.
ADK-PA now yields 12.7%.
Dividends are currently tax advantaged Return Of Capital (ROC).
The Panick Value Research Report is available in the "Dividends" section of the Seeking Alpha Marketplace if you'd like an advance look at the article. Article will be made public next week. Article includes yield to maturity calculations for RFTA and RFT. I think RFTA is mis-priced relative to the preferred issues and RFT.
A Safe 11.7% Yield From A REIT Debt Issue
Oct 15 12:36 AM (Updated on Oct 15 8:44 AM)•RAS, IRT•Comment!
Disclosure: I am/we are long RFTA. (More...)
RFTA is a RAS exchange traded debt issue.
RFTA now has an 11.7% yield to maturity.
RAS is a diversified and well capitalized REIT with low credit risk.
Comparison of RFTA to RFT.
Comparison of RFTA to RAS-PA.
GDPAN is equal in seniority to GDP-PC and GDP-PD. The company can't convert it to common unless GDP skyrockets. GDPAN holders can convert it to common. None of the preferred shares would do well in bankruptcy. GDP just knocked off some debt with a swap for new debt at 50 cents on the dollar. No guarantees, but that kind of swap reduces debt and makes a bankruptcy less likely.
The first 3 major problems with your "analysis" of the financials are:
1. You omitted the preferred stock from your calculations which is senior to the common.
2. The 250 million credit line is a meaningless number. What's meaningful is the far smaller actually available borrowing base which is currently overdrawn and the bank is forcing them to liquidate assets.
3. The asset values are based on higher commodity prices.
Maybe they will survive, but it's doubtful given recent events.