September BV = $700,680,000 subtract $100M = $600,680,000 BV
Sept issued shares = 41,327,300 subtract 7,692,307 = 33,634,993
Beg BV = $16.95 End BV = $17.85
Its actually a really stupid thing for these people to do.
Instead they should have just reduced the dividend and used the $$ to buy planes. Unless they are saying its not a good market for buying planes. In which case they should just refi debt and return the $$ to shareholders.
But this doing a secondary and then repurchasing the shares you just issued ... is silly, unless its really a scheme to put the shares into a controlled group by selling to friends and using the proceeds of the secondary to buy back open market shares.
Look for Fly to go private?
So... on ipo'ing you say how much you want to sell and do so until you get people to buy... in a reverse situation they want to buy 75Milion worth on x shares.. so say i can offer 20,000 shares at say $30 a share and if they take it.... then great. or ... i really want to sell so i offer 20,000 shares at 14 and they then can start at the bottom and go up until they spend 75Million? alternatively they can buy on the open market?
Seriously, this massive repurchase - on the heels of the secondary... is stupidly nuts. Maybe this is part of a larger plan to to a managed ... MBO? By using issing shares to bbam and then using $$ to buy back free trading shares.
These guys are clueless as to the operations of the business. Management is bi-polar. They do a secondary and crater the stock and now they remove the dividend.
If you go to yahoo and look at the analyst estimates for 2016 and 2017 it depicts decreased revenues and eps. Which i think is beyond nuts... this is for some reason part of the problem. Anyalyst coverage of AER is non-existent. Its just not a sexy stock.
I've written its nuts for this not to be at 60. This time next year we should be at 70.
I would love to see even a small dividend to allow me to accumulate some near free cheap shares as we wait.
For pfizer to buy AGN they'll have to do about 13-1 on pfizer stock. Effectively, ending AGN's run as a growth company. Doing that will also provide a 1.2% annual dividend for those that stay. Sure, I see AGN getting to $500 a share in 4 years or so Pfe will certainly have to pay up for those earnings potential.
What i'd like to see is some "emergency" motion to stay the sweep; pending legal argument. To protect the assets to the company. Also, i'd like to see some action the sought to remove the fhfa as conservator and appoint one by the court - in that fhfa and treasury are connected.
i would NOT expect any share repurchases. They just did that cratering secondary to increase the float. I would think they'll retire debt at a discount; but stock buy back; no.
I too have investment in this. But, for me, its far less. Probably less than 4% of net worth. Just not interested in risks that come with that. Alas, if we get to fair value, I'll wish i was stupid and put 50% in or more, but then I'll realize that, that is simply too much to "bet" the house on. 4% and fair value and i still retire soon.
If i loose all 4% then, i still retire.. only not so soon but soon enough.
Guys, this thing is still way over valued at $26. Look for a sustained pull back into the low teens or single digits. Their net income and growth does not support stock valuation. Sorry.
Sentiment: Strong Sell