It was good to break this resistance level. But, it will probably be short lived. The overall market is getting frothy again. So look for a pullback across the board. This will take Fly down $2 bucks or so. Yes, I know fly hasn't paticipated in the recent feb recovery. But, expect it to suffer as always.
I know what you mean. I had to pay tax on phantom gains I didnt have because i still have not sold since i acquired Royce Labs shares in 1992. Sucked paying 25% tax on $140 gain i never realized!
I believe the cause for that was Actavis taking the company "off shore". Thus, it won't happen again.
It'll be a tax free - name change for you and me - i do believe. Oh, forget about calling investor relations - they are useless.
Sorry, but i don't know of many stocks that go from 30cents to $2.50? That's not a bad %.
I can think of no settlement opportunity that involves allowing the government to take or keep what they did not honestly earn nor are entitled to. Therefore the warrants are garbage. Berkowitz and Ackerman are wrong on their position regarding the warrants. The greedy government should not be allowed to keep what is not theirs.
Mu - shows current trailing EPS of 3.08 a share and Aug 2015 expected of 3.63 with Aug 16 expected of $4.18. This depicts EPS growth of around 16% per year. Yahoo show 5 year expected growth of 15%.
Mu currently trades at a discount to growth rates of 66% or so.
If Mu can sustain the 15% growth rate over the next 5 years its EPS will be around $6.35 a share. If the current EPS / Price stays - it depicts share price of $63-v today of $31.. Not bad a double in 5 years. But, if its able to show sustainable earnings at 15 and can trade at 15 in 5 years PPs could easily be north of $100. This would be a triple.
The opportunity, the MU has considering the cash flow it could generate and the ability to use that cash flow to return to shareholders or grow the company could easily see this with accretive acquistions be well north of $100.
For me this looks like a good target. And if the value remains un tapped . I'd expect a larger player to sniff the company for a buy-out. Could get really interesting.
Blake discussed this at last years shareholder meeting. He sees no value in splitting the shares. It costs more money to have more shares outstanding, he says there is enough and with odd lot trading being the norm now, you can eaisly buy 40 shares as 100. So no split.
Expect a healthy divident boost though. Will be up 20%
Been with Fly for since 2008. Right now absent the secondary and some management shenanigans the past couple of years, considering the dividend this should be in the mid 20's. Probably around 26 or so. Another secondary would be devastating on the stock. As it is, the last one was timed and priced to benefit management and not the shareholders.
Still holding... growing tired.
I realize this is counter intuitive but if as pundits say fannie and freddie are nationalized - you know owned by the federal government. Then why is there an income tax line / expense. Shouldnt that just be ... intercompany? I mean... how can you "tax your" majority owned subsidiary? So, then aren't the money going to the govenrment that much higher? In reality?
Exactly how is one arm of the government independent of the government?
I just can't see how that could ever be the case.
Its, like this is just "made up" lets play school / house / cops and robbers typed tom foolery.
How can one governmental agency agree with another governmental agency both lead by the white house and call it "an agreement" seems dishonest.
That would be like saying i agreed to sell my wife my stock in coca cola for $10 and take a $300,000 tax loss on it.
But your honor it was arms length agreement.
Mentally step away - and ask yourself...
Is the Government doing the "RIGHT" thing?
Put emotion and ownership aside and simply ask that question. Are they doing the right thing?
Play devils advocate and try to convince a stranger that they are doing the right thing?
Personally, I've been unable to convince my self they are. But try anyway.
Thanks for the reply.
Heck yes i've heard of the 5th amendment.
I totally agree; a scenario i wrote about is 1000% wrong. And id be mad.
Personally, I see no real alternative but to end the sweep and return $$ back to fannie and freddie. I think the number is around $50 to 60 billion. And then stay in a "conservator" mode for 2-3 years, but being allowed to build capital thru earnings.
Once this occurs peg a "release" from conservatorship and payment by government of some settlement to shareholders; including canceling or voiding those warrants.
This is a 4-5 year play.
After reading the narrative and commentary I can't help - maybe its my wishing - that things really turned today. I consider the discussions were not about winding down fannie and freddie; but more understanding how the fhfa met its goal fo sound and solvent. Operationally sound but now how to become solvent.
My worst fear is that the government would do a hook and lateral....
They'd enter a 4th amendment... convert the pspa $ to common shares at current market value - squashing us commoners. And then further dilute by "doing the warrant deal". That would dilute commoners by near 100%. Leaving the preferred's. But, by the same stroke of the pen Mel would deem all preferred converted to common and then dilute the fire out of them.
This would give the government near 98% of the entities. Which they then could sell for $400Billion. Thereby taking all of the profits and then cashing in on all of the equity.
So, both good and bad news. If they did the lateral... thing the lawsuits would flow. I'll be dead and buried before its resolved.
Most everyone with any active brain cells that has studied the Fannie and Freddie situation know and accept that they were hijacked and taken over in a conspiratorial fashion by an imperialistic government bent on destroying them for some reason. That reason does not matter. What matters is what happened is factual.
Fannie and Freddie - neither were in trouble (even after the chicanery of the government to pose them in that light). But after an orchestrated set of lies; were invaded by the us treasury and other felons. Placed in the stockade and made to pay at first usurious rate (10%) v- 3% going rate; have 80% of their owners "ownership" stolen and further manipulated their financial statements using "cookie jar" accounting tricks that have lead many to jail (Just do a search on the subject SEC enforcement of Cookie Jar accounting). All proven to be lies upon lies upon more lies - a massive coverup.
So, why is no one in government doing anything about it. are they to perpetuating the lies and coverup.
When is this real story going to "break"! Where is the outrage. It took 7 years after a loved one of mine died at the hands of the VA that to become a story... What about this.