After CXW coverts to a REIT does anyone have an idea what their future yield will be? 90% of earnings will have to be paid out to shareholders so they will obviously save on future corp. tax which has been in the range of $85-90 million.This also takes into consideration that earnings stay at least consistent w/ prior years. Understand that this is hard to estimate but curious on my end.
No need to worry! Very low attractive P/E on great earnings. 50% increase in dividend over the last two quarters and selling over $400 M of assets to an MLP. Their current price of $50 will look cheap by this time next year. Lay back and enjoy the ride up.
I think some people here are jumping to quick conclusions. PSX is not becoming an MLP but selling only their transportation assets to form an MLP. Yes, MLP can be tax nightmares but thats not the case here unless you buy stock in the MLP in which case you then better get your accountant on board. this transaction will raise some nice cash for PSX, etc. Again, all the details have not been ironed out but PSX is not becoming an MLP.
Everybody has made excellent posts and I love Apple as much as you all but for Apple to approach this price they need to shake things up which would be the following: 1. Declare a 2 or 3 for 1 split. This will allow the average investor a chance to get in at a lower price. 2. Declare a special dividend, say $5-7 bucks a share. 3. Steve Jobs after several months off comes back. Apple will continue to break quarterly records as the year progresses. Any novice who looks at their balance sheet & P&L would be floored, in fact Apple presents the best ratios in the world. Just sit back , be patient and you will be well rewarded whether in 2011 or 2012. I'm a Peter Lynch fan. Go to an Apple store and you will be amazed. Show me any other industry right now that has this kind of following. Remember be patient. Your're investing in the best company in the world. Good things will be coming your way shortly.