Danny hasn't been selling, he's been buying and collection his two cents. Scary, the more ifmi loses the more Danny doubles down.
You are probably right. I think RAS is picking up properties as the mez pieces come due and the owners can't handle repaying, or refinancing.
It will make sense to eventually move properties from RAS to IRT. I thought it would happen quickly, but more likely a year or two into the future. IRT must get a healthy valuation for its results first......
Hey, Maybe Vanguard's buying was the thing keeping the price up over the past few weeks.....
In theory they can't buy more.
RAS is still a small CAP..................not so well known company.
They are best know for their index funds, but they are also very big in actively managed funds.
The only index fund that RAS might fit into would be some REIT index. OR Russell 2000 or something like that.
It's wouldn't really explain their large investment in RAS in the recent past.
2% is not an outrageous move down and it didn't happen on excessive volume.
One would think that RAS promised the I-Banks a good dividend back in January so that they wouldn't embarrass them when selling 10 million shares.......it's too soon after to disappoint.
Known is good. But many institutions will not touch something so young and so small. $10 million is chicken feed for most of these folks. They can not invest the time to follow it at this point.............
RAS is harder to understand and has a mixed past, but an institution can put $40 to $50 million to work with relatively easily................
It does seem highly likely that IRT will issue more shares in the next 3 to 6 months and it will be done just as you say.......irrespective of the stock price. They say they are buying properties at good value, but the shares are issued at a very good value too.
I don't see how IRT will get to a better share price until it gets much bigger....catch 22. It is too small and too young for many institutional investors. When I look at the big boys in the multi-famly rental business.....the shares are 99% owned by institutions. Institutions can't put enough money to work at IRT even if they like it.....under 200 MKT cap......so at best they could invest just 10.
Is that where Donner Kebab comes from?
Maybe I will stop ordering that entree at the Turkish restaurant...............I hadn't given it too much thought before now.
Hey, I don't pitch or catch with Davis. I don't go that way..........not that there's anything wrong with that.
In any case, you are free to respond to my posts too. At last count I am in the hundreds, I think.
I know my posts tend to have a positive bias to RAS........I am long after all. I do still question things and don't take everything for granted that all RAS is all good all the time.
I have issues with ras's opaque presentations of the Tabernas. They could add clarity and color to other parts of their business too.
While I don't believe that RAS is heavily shorted by speculators, as some posters do, I think that RAS could make those that do short scurry out the room rather quickly if ras just started to pay 90%. Future capital raises would be done at significantly higher prices.
What is the logic behind only paying 65% of cash flow out? Why not pay 90%? The cash savings, why substantial, is a drag on share price growth.
Just as RAS stopped issuing new prefered shares and didn't treat much of the 2013 prefereds payout as ROC this year, why not make a dramatic change and just declare we are paying out 90% from here on.....
What would happen if the board stated 90% for 2014 and from here on.......
So, if the extra $6 million+ in net interest margin is real ..................and not part of Tabernas, wouldn't RAS need to pay out an extra 4 to 5 cents of dividends even using their 65% of cash flow formula?
Could this be the reason they desperately bought back the "old" converts and issued new ones with a much higher strike price........and then entered yet an extra transaction to make any conversion with the "new" converts have the equivalent of a $12 conversion rather than a $9 conversion?
Where would the share price move to if they issued a 20 cent dividend right now?????
So, if it is not related to Tabernas...................what are the chances of getting 2 cents or even 3? It would certainly seem like there is much more available for distribution.......
The number is over $2 million, right?
I'm sure building docks is a very expensive enterprise, and I'm sure that done properly docks can add significant value.
I don't think the interest income would show up on the financials. I think it would be eliminated in consolidation. Money owed to yourself.