You can't tell it by looking at PPS, and projecting a yield rate on top of it, for that matter, either.
They already did set their 4th Q '13 dividend, back in May.
Chimera Investment Corporation Sets Dividend for 3rd and 4th Quarter 2013;
Another 25 million shares today, 87 mil total for 3 days. Still not even 10% of the float, but. . . .haven't seen this kind of volume since Dec.'12/Jan.'13. Those dates make me still wonder if it's booking profits, or tax-related, but whatever the case, CIM's got a lot of attention these days. And it ain't no run-of-the-mill divvy run.
Doubt it's short covering, for only 9 cents of PIL. 61 million in volume last two days, only 16 mil short. Something else going on here. Maybe traders booking losses (or gains), planning to get back in after 30 days. Any other ideas?
Picked up a little today at 7.40, an addition to some core holdings, after waiting for it at 7.38 all morning. Then, of course, it dropped down to .35. haha. Hoping for a good bump, trade some of it out on the divvy run, hold the rest a while longer.
Liza, my question would be "Why sell so far out"?" Wouldn't it be more profitable to sell about 6 months out (getting past a bad quarter or two), and then roll/re-sell? If the distributions are increased dramatically between now and Jan. 2016, and since put prices reflect the estimated distributions, you could miss out on some good premiums. Of course, if the distributions are increased, then the underlying should go up in PPS, so your short LEAPs are safe(r). And, I guess you could always trade/sell shorter durations in and around the LEAPs position . . . just rambling out loud . . . .
"$330MM in inventory" -- that's a lot of donuts!
Saw someone else mentioned on this board only $5MM in inventory, as part of the buyout. That's quite a difference. No doubt there's a big write-off/write-down in the math somewhere for TPG-Acon.
Getting out from under those "earnout and margin support components" is also no doubt beneficial to them. Would guess that they're carried over to the new GPs, right? Wonder if that's being factored in to the WNR share price jump. . .
If there's a change in the MLP structure, I'm sure the yield-chasers would look for a chance to jump off, since WNR's 2.7% yield pales in comparison to the 15-20% range NTI was hovering at for some time.
Correction: "(plus .31 distribution)" should have been "(.31 distribution aside)".
Based on the 19.42 per share valuation (plus.31 distribution), WNR then would have paid an additional $83MM for the GP interest, or about 90 cents a unit for the controlling/managing interest in a (Yahoo numbers) 2.2 billion dollar company (market cap), with 4.4 billion in revenue, adding almost 40% more annual revenue. Granted, last quarter's numbers were rather dismal, but it's no wonder WNR's up around 8% today.
They've already more than tripled that with the increase in unit price since the valuation was set, though TPG-Akon shouldn't be feeling like they left money on the table, since they probably had a sense of the upcoming numbers, and they made a good return on their initial $600MM investment., with previous unit sales and today's buyout.
Just hope WNR keeps NTI unitholders' interest in mind, as they seek alignment for their new acquisition. (Any thoughts on whether a tender for outstanding NTI units with WNR shares would be possible, and how it might play out?)
Does Genesis own the train and or railroad? I thought they only owned the destination terminal and pipeline.