As a class, I would agree with your reservations about restaurants. However, Red Lobster is within a broader middle class seafood niche that will do fine over time. Stable is the name of the game...same store sales fluctuate over time, the question is long term sustainability. You might want to check out interest rates on CDs, if a guarantee is what you want.
A just recent Seeking Alpha analyst reported that ARCP examined the 700+ RL locations, picking the best located and most renovated 500+. The report is worth a read.
It outlines a sound, solid rationale behind the recent transaction activity which some view as irratiional. Looks to me they have a sound platform for income stability and future growth.
Not many of those around. Bought $55 today.
The larger coal units will be highly competitive with nat gas at more stable prices. There are many smaller coal plants without equipment that should be shut down. The global consumption of coal has grown and will continue to grow globally. It is important that more research be done collaboratively among utilities and other countries at stake to focus on carbon capture.
The same folks who undermined CWH under the Portneys is at it again. Rest assured, they're tied to short traders. Bottom line: the new management will struggle to retain credibility and borrow money. I've been out ,will buy again when another Reit buys the pearls out of bankruptcy.
Sentiment: Strong Sell
These assets get more valuable over time and selling is shortsighted. Management somehow thinks the company is under financial duress. Nothing is further from reality with equity/debt strong as is cash flow. Financing isn't a problem. I hope the new CFO can knock some sense in the new CEO.
If one examines the evidence, WIN, like FGP, clearly has the support of their bankers/financiers with respect to their dividend policies. This is often overlooked in terms of examining the likelihood of future dividends.
I agree with you. The track record of the dividend, although not always a predictor, is an important measure. An analagous example would be Ferrellgas(FGP), which I also own. Every quarter, the detractors of FGP say the dividend last quarter is the last. They are into their 19th year of paying the $2 distribution.
Can't forecast but often good investments, especially long term, are made when certain facts aren't recognized:
1) has anyone noticed coverage of earthquakes; busloads of Texans going to Austin statehouse expressing concerns, etc.
2) environmental impact of fracking, not just earthquakes, use of large quantity of water and its contaminants;
3) natural gas will be exported raising the cost;
4)fracking wells are generally shallow, meaning they deplete more quickly than commonly thought.
5) Volatility of natural gas prices.
What this means is the importance of thermal, not to mention met, to the stability of electricity cost, essential to living and manufacturing. Utilities should be required to use the best technology or close the plant; coal sequestration technology should be part of a global effort, other technologies to cut emissions. Global warming is a reality. Cost of coal in the Illinois basin is very economical and plentiful.
I'm a long term income investor. NRP is a good bet for some of my money.
The notion that cash flow should cover capital expenditures(that is defined as equipment and property that benefits the long term operations(capitalized not expensed(accounting 101), and dividends is among the many absurd notions we believe. How many consumers pay for their automobiles in cash. A company builds a headquarters building....must have cash flow to cover according to you.....ridiculous, absurd.
I think the dividend could be raised. The financial austerity constraints being imposed by management and bankers are pretty ridiculous. I have a commercial banking background and an MBA.
Reasons why I don't think preferreds will be called. 1) Preferreds are around par or below. This means they can't redeem the preferreds and finance them cheaper with similar secuirities. 2) The common dividend is above 5%. This is not a likely source of funding to redeem preferreds for only a 2% approx dividend reduction considering its dilutive effect. 3) CBL, although having a pretty good credit rating, would not want to raise debt unduly. There will be capital needs for refurbishment and replacing tenants like Penneys and Sears. Toying too heavily into debt is one reason their stock hit $2 about 4 years ago....a question of CBL's viability. In other words, when it comes to debt, they learned a lesson will not use debt to redeem the preferreds.
Corvex knows the RMR has acquired valuable assets over the last 15 years. Valuable in that they can be sold for some quick bucks. RMR tried to make its keep the old fashiioned way, acquiring valuable assets, relatively stable income over the long term with some growth.
The new way to make some bucks is to disparage a respectable company to drive the price down, initiate a takeover, milk its assets and bankrupt the company. It is the Romney/Wall St strategy--the Wolf(wolves) on Wall Street
Sentiment: Strong Sell
Corvex wants to sell off company assets, leverage up the company for its own short term gain. Investors who want a quick fix should go with Corvex. I was once a long term holder of CWH and most of those companies in the RMR group but sold months ago. I have no dog in this hunt.
If you're a trader, go with the new folks. I'm interested in a long term stable income investment. Thats why I'm out. For those who are long,my advice is to take the quick fix as it occurs but get out if pretty soon after Corvex takes over.
Sentiment: Strong Sell