Wait until they refi the loan that has covenants about dividends before thinking dividends will happen at all. This is time of year they seem to rearrange their financing, so maybe next month you can start thinking dividends and ROC.
My question for the tax experts is "are prefereds counted pre or post tax loss carry forwards?". I think they are normally treated as interest, so that would make them no longer ROC when they start making enough money to use the carry forwards. If they are treated post carry fowards they would remain ROC until the 700 million or so is used up.
What happens to the 1.5 billion in taxes?? Presume Istar has been paying them and if so they are part of the tax loss carryforward. Does this mean the 600 million tax loss carryforward goes away and they are ending up with 900 million in taxable? Also, what happens to the legal fees when they are reimbursed ? Would be interesting to hear from some of the tax experts on this board as to the impact of the total judgement. BV certainly going to increase.
The company purchased a fleet of about 20 tanker trucks a couple of years ago to move crude from Bakken to the refinery. One of last years 10 Q's had the number of BPD they were moving by truck. How much they get out of pipeline don't know.
Google psac.ca and you'll be able to get the Canadian prices and their spread to WTI
They are talking total assets, not net assets. They sell the shares, they increase total assets without doing anything but selling the shares. Since NAV is falling (and will fall more with the selling of shares below NAV) all they are increasing with the sale of stock is their management fee.
Yes, and look at the share price over the years, its not going up and management fees are, so kind of proves the point..
No guarantee of that. They could stick the money in treasuries or cd's and still make their money on the funds. There is absolutely no correlation between what they do with the money and their management fees and absolutely no incentive to increase income. What's the yield after their management fees.
They are immediately reducing NAV by discount to NAV. They are increasing there income without any regard to the performance of the investment. Share price reduces in relation to the reduction in NAV. They get more income while tucking to the shareholders.
What would be more interesting and informative would be the release of a transcript of the meeting and the result of the proxy vote.
Wouldn't look for substantive information. Insiders have done some heavy buying and don't think SEC would be a happy puppy if anything was announced or discussed which would have an impact on share price. Probably going to be a lot of shucking and jiving. Most impact will be results of proxy vote.
Why do they have to sell, they don't care what happens to the investment so they are using the money to keep their management fees high and not based on performance. There are many investors who think insider investment means good management and is a reason to buy the stock. It doesn't.
Slick, you're attributing the slide to Mr Market assuming a possible dividend reduction. There are other negatives which could be causing or contributing to the slide. Certainly the ATM below NAV vote is impacting the price and the apparent disregard of the reduction in stockholder's per share equity value while increasing the management's reimbursement is impacting the share price. No matter what Mr. Market says, Cooper had decent arguments for sustainability.
Someone on this board indicated the results of the vote on the ATM below NAV will be known on the 5th, so I would presume, if announced, that will have an impact on share price next week. Will be interesting to see which way the vote goes and which way the market goes after. What's interesting is I can't figure which way the price will go if approve or not approved. Got any bet?
Payout there taxable earnings as dividends. Istar has roughly 700 million in loss carryforwards, so they won't be legally "required" to give dividends until they chew that up. Additionally, they won't give out dividends until they get rid of a loan that has covenants saying they can't give out dividends unless legally required by the IRS. Black or no, the IRS has them deep in th red.
Nice thought slick, but anyone who does anything based on a yahoo message board without further investigation deserves whatever happens to them, and it will probably be bad.