I am doing nrf also the people that are spinning off a lot of European real estate (now yielding close to 10%)
I have always been a glutton for punishment, I believe it has to go up but that is just me, I haven't finished my research on this thing yet but I suspect the grammy people are seeing the reduced price of their shares and maybe they won't vote for it. I have csg as 2% of my portfolio and by keeping smaller sizes I can go overweight on bad news if I wish and not be effected as much when the dividend goes down.
Having a margined position where the daily price action can cause you trouble (like margin calls) anyway so it's best to find a way out of that problem if you have it, sell calls on some of it or something.
I don't see the benefit of worrying about what the price is in the short term. "In the short term the market is like a voting machine in the long term the market is like a weighing machine". I would just take their interest money and take advantage of the lower price.
I am not going to assume you mean share price instead of yield since it almosts yields 10% right now.. Looks like I am going to buying a large chunk of shares soon. Looks like a falling knife right now but I need to invest some for the income and hopefully I am not to overweight anything.
I have held this stock for 1 1/2 and this is the lower part of the range, I am sure this could be tuff for some people I sold O once because I didn't want to loose the income not sure that was the best thing to do but I did.. If you are looking for something undervalued to bring the yield back up you could sell some and buy psec or nrf. I suspect if you feel the income loss real bad then the position size is to big or your in a situation where you need more to invest (don't we all?).
If that is with the puts then that is a great play.
You have a lot of moving parts, you have the possibility of more leverage in the companies that are spun off, you also have loans that are getting repaid and then the cash gets reloaded.. I believe the loans are mostly 7 year loans so they could be at both higher and lower rates. I don't know if their real estate is going to be more profitable over time but riets have been tending to raise their dividends.. during the medium term the loans are pretty much fixed but are not at a rate forever.
I would expect the price to go up Monday as my guess.. not an unusual move for a stock.
You subtract 8 cents from that because of the dividend so that is 12 cents and most likely you are going up on Monday, that is the norm for ex-div on a lot of companies... $7.50 starts to look like an attractive price again and $7.20 is something I may not be able to ignore..
If debt is spun off then you can buy shares back at the discounted level without paying back debt... I bought some options at the 8 (not a lot of options but enough to supercharge my return because they were so cheap) bdc's have falling rates and that means there is to much capital so buying back shares is one way to deal with that industry wide.
There also may be too much money out there chasing the same loans so it should help raise rates if they did that. Unless they spin the debt off they would need to buy back debt as well.. in a higher rate environment where they could get it below market that would be interesting. They also have convertibles where they could buy the shares at a lower price and resell them (by converting the debt) at a higher price..
I suspect if you are buying a large amount of shares you would want other people to sell so it could be buyers and shortera saying bad stuff. I am off to see what I would like to do with the cash I am getting...
seems like the short people are only borrowing shares when there is a dividend at least mine. It would be more tempting to buy shares if they borrowed mine more often,
Sentiment: Strong Buy
An idiot like me would think it is bad for him and good for me if he had a margin call. As a contrarian you have to love bad news sometimes, not that it is a bad sign that he is buying shares... I was tempted this morning and I am still tempted to add shares right here.. The $7.10's looked hot.
I think that articles do in the short term effect the price.. I am trying to decide if I want to use part of my cash horde for more shares or wait to see what the spinoffs are.
sounds like propaganda. I will agree that by receiving cash for the spinnoffs they may take some time to reinvest it though. I suspect if the div goes down it goes back up.
6 million is a little bit of money..... I suppose he isn't in danger of getting a margin call, I was wondering about that... I wonder if he is reacting to the stock price or just being under fire.. (I have a crime thing that harasses me when the price goes down somewhat of a contrarian indicator of sorts when the harassment gets heavy it's often time to purchase shares)
If he bought them on margin that would explain the stress. There could be margin calls on this thing because the price is going down, some people who are over-leveraged sell involuntarily I saw this with ora great time to buy and realy bad for a manager who has that large position.