wrong. the credibility of the company would have been lost if their accountant quit. This did not happen. They acted on a whistleblower alarm. Ratings are based on asset quality and financial results, what some say is similar to a rounding error will not impact ratings in a meaningful way.
They didn't sell because of the intentional fraud, they sold because of panic. If the management statement regarding the issues is a lie or contains material errors then the company has problems. Management self reported the issue, it did not arise from a formal SEC investigation. Big difference.
also aren't they fishing for shareholders who had 100k in losses? Seems to me that the number of plaintiffs will be limited.
Funny, last week undoing the Cole Deal was a must. Now that it is undone, its now horrible news.... Now they can sell it out right and cut ties 100%.
Credit watch is not an automatic downgrade. What do you think their credit rating would have been if a majority of their tenants were rated at junk level?
I don't see that happening. I'd prefer they reallocate return to shareholders into share buybacks and reduce the dividend as needed. What is going on has little to do with winter slowdown in demand. The world economies pretty much suc. Demand growth is down. The good news if any is that no one thinks this will last much into 2016. First half of 2015 could get uglier. Next OPEC meeting not for 6 months. If OPEC production not down to 30 million bpd by then, a cut( of their production celing) at that time will be very unlikely.
Kuwait says 65 dollar oil is likely for 6 months or so. Perhaps that is how long it will take the rest of OPEC to stop overproducing. IMO Saudi won't cut production until the OPEC over producers cut production. Getting OPEC to act in unison is just as important for Saudi as disrupting CAPEX/future production from non opec countries. This is needed to allow time for global oil demand to catch up to global oil production. In the mean time, I try to figure out just how many shares of LNCO I should buy.
From a news article.
The Organization of Petroleum Exporting Countries pumped 30.56 million barrels a day in November, exceeding its target of 30 million for a sixth consecutive month, according to estimates compiled by Bloomberg. U.S. oil production accelerated to 9.08 million barrels a day through Nov. 28, according to data from the Energy Information Administration. That's the fastest rate in weekly records that started in January 1983.
not a new guy. nothing radical in changes to asset allocation. Most have wanted the exposure to Japan debt reduced, maybe cutting it by a third was not enough. hedge funds and other growth exposure goes up to 3 percent of portfolio. Not enough to scare anybody.
also tells me that the potential damage payable to shareholders per share will be small. I think lawyers will argue that the price paid was too high considering the real FFO/AFFO numbers. So, the damage will be the difference between what was paid for share and what the revised share valuation would have been based on the correct numbers. On the company side, the share price was selling at a discount to peers anyway so the argument will be weak at best.
Nothing new. Ratings agency review. If SEC or other shoe drops implicating a much wider problem than junk might be warranted. Affirm current ratings likely.
The main sticking point will be whether or not the error was "material". It can be spun either way, I don't have a crystal ball, but my opinion is that potential liability/"damage" will be muted by the small size and relative lack of impact on the company's financials. Blame will fall where it should. Just don't think the damage will be material either.
I suspect that if they do it will be much smaller. They went to a managed payout of 9 cents a month vs paying an earned dividend. Last month pay out included return of capital. Suspect they will likely bump the monthly payout again next year.
buying back shares reduces future cash requirements for dividends. It would lead to a more stable dividend. Doing it now would probably result in a rally as the known is better than the unknown. Right now some think they're gonna cut 50%. The company ought to retire some of these cheap shares which will reward shareholders down the road. Otherwise share price will lag because people will question an unsustainable (maybe just in their mind) dividend policy.
I think next catalyst will be distribution announcement. Should be a bit higher than last one. That may spark some attention. Some just don't want to ride the ups and downs of a holding like CVR.
no probably more like MO than Sears at this point. But you could be onto something as Sears will likely spin off its subsidiary REIT that is developing old sears and kmart locations.
with the low price at least CBI is getting a good deal...assuming they are really buying any. lot more shares retired.