Nice to see that the Board saw the same opportunity as I saw which I posted about in this thread many months ago-- and raised the dividend about 50%!
Well done FR Board.
Thanks for rewarding your loyal long term shareholders.
Smelly indeed, NMB. Kind of like a "money grab" at the last minute before forcibly getting shown the exit by Elliot & Co. Might as well grab a little candy before getting tossed out of the candy store...
I hope the market hangs in there in time for a good exit price to be presented to us.
I suspect market turmoil and resulting pressure from Elliot & Co might have been the reason the board didn't wait until the end of January timeframe to issue the --go forth with maximizing share holder value plan.
I was aware that this was an internal move.
I wish we knew Erickson's reasons for not wanting to continue fulfilling that need. It would seem he is compensated enough already and I see nowhere that he is taking a pay cut now that he no longer has to fulfill those duties!
Ah well....all water under the bridge if Elliot & Co and can deliver us a good exit price.
Who would they get to step up as the new CBO (Chief Bean Counter!) knowing that the gig could be short lived?
CBO's are looking for a longer term gig UNLESS the company presents a sweet pot for them to collect.
Often, when companies are put on the block, many execs quickly hit the pavement looking for the next gig to jump ship to which will engage them in a long term capacity.
I think ACAS had their back a bit up against the wall in this pay package. I say that knowing full well that ACAS management have FAR overcompensated themselves and showed no thriftiness in this pay package. Of course, a keen eyed prospective CBO would know full well that other top management at ACAS have gorged themselves at the expense of shareholders--and so I would think any prospective new CBO would make management aware of that and say something to the effect of, "If it's good enough for you, it's good enough for me!", and what is management then to say?
I don't think management would say at this point, "Well we have to be thrifty now to save shareholders a few bucks", as they have completely disregarded the notion of thrifty pay packages to this point.
The fact is, CFO's or Chief Bean Counters (CBC's!) at sizeable publicly traded companies are Very Well compensated. The comp package does not strike me as terribly out of line. As much as I think Malon & Co have unjustly gorged at the expense of shareholders, I think the glare of Elliot has brought this comp package down relative to what might have been if Elliot was not present.
Then to bring out full value, B&W, Elliot could force the board to direct a liquidation of all remaining assets that cannot be sold at an acceptable price relative to NAV. You wind up with just cash on the balance sheet, which, much like a money market fund, will be valued at NAV, except it will be valued at NAV in the form of the stock price.
Good to see continued breathing room between the annual dividend and expected earnings per share for 2016.
I remain concerned about the level of debt at SUI should we get a significant increase in interest rates over time.
Makes you wonder WHO would part with their shares at this price with all of the news coming just around the corner and the likelihood of a much higher stock price, too?
That is doubtful. Elliot made its name by bringing about real change. They are not known for taking "greenmail" to disappear.
The wording of Elliot's letter to management took such a severe tone as compared to many other such situations I have experienced that I think, clearly if Elliot has its way, there will be No option for management to keep their jobs.
Yes, ACAS shares trading today on higher average daily volume on a notoriously slow volume market trading day. "Step up to the window boys & girls and place yer bets!"
Glad I bought more when it was ugly!
And you never know, BWillie, you might wind up with a Triple Win--1) a tax free stock for stock buyout deal at a substantial premium further lifting your unrealized cap gain from a peer company that 2) pays a sizeable dividend, and 3) which also has a better management! Now THAT would be a day to celebrate!
And why not? If ACAS current management realizes the gig is up and they are Out, they too, through their stockholdings would benefit as much as we will from a Triple Win deal which would be better almost assuredly than being carved up like the proverbial Turkey and taken private.
I like your Turkey reference, BWillie, but think the Triple Win makes more sense!
But Sid, let me also say as a years long reader of this MB (granted, not as focused daily on this as many here are as I have a lot of other companies I need to follow) I have to point out that NMB, now Newly_Minted_Bucks, has been an EXTRAORDINARILY good and conscientious contributor to this MB for years. I apologize Sid, if I have the wrong guy or gal here, but if you are the poster who has been recently lambasting NMB for being something like a Management's Boy, I have to tell you as strongly but politely as I can that you are very, very wrong.
In my opinion, through my years of reading here, there has not been a finer, more diligent and thorough--and with deep understanding and cogent observations--contributor to the ACAS message board than NMB.
Always polite, tolerant and engaging opposite viewpoints, and truly a person to be Thankful for. That is the NMB I have read here for years.
Best wishes to ALL MB posters for a Happy Thanksgiving.
Just thinking that given ACAS management's history we might also interpret the engagement of Goldman and CS as ACAS management hiring both Goldman and CS to advise them on how best to DEFEND Elliot's foray into bringing change to ACAS which Not Only will maximize shareholder value but will ALSO, from my reading on Elliot's points, cause CURRENT management and BOD to be Ousted.
How often have I seen entrenched management's who have overly lavished themselves with excessive compensation at the expense of shareholders try to Protect their jobs and DEFEND against a White Knight like Elliot????? ----》 PLENTY!
I think it may be worth discussing ACAS'S hiring Goldman and CS in this light.
I will be emailing you as well NMB. Thanks.
Fox (long time poster/reader but a different poster than Foxyi)
Just wondering if, as you think back through your history of options trades in its entirety across all of your option positions in all stocks, or indexes, etc., whether you have made money in total or not?
Being a leveraged and timed bet, a succcessful net profit history typically is not on the side of options players. Most do not fare well over the long run.
That said, I think they probably have more fun!