All I have to say in reply to the hedging is that they better damn well use any of the monies to pay off the debt. If you will recall management also told us the "hedging" fiction that our dividend distribution should be good throughout the rest of the FY based on the aforementioned hedges. I think that is the main reason many of us are skeptical and the stock keeps going down... management's inability to let us assimilate all of the bad news in one sitting. It is like pulling off a band-aid. Most of us would rather pull it off all at once instead of a slow, excrutiating pull. If they had just cut distribution right away like some of us thought, if they had just begun to pay down debt and told us up front; if they had just been forthright about issuing more stock; IF,IF,IF. Now instead of coming back on some positive news in this quarter everyone is focusing on the dividend cut. We could have absorbed all this pain so much better and earlier if management had just had the backbone at the beginning of the year.
Well somebody as "shorted" it to just about its limit. Great that they are paying down debt. Would have been nice if they had let that be known when they did it. I am very worried that I cannot trust what management says anymore. However, I am in too deep now and have to assume that we are finally doing something about the debt which is the number one concern for all potential investors. I am hopeful that what we lose in dividends we may see in a slow rebound of the stock price; but with this management I am not holding my breath..... my nose, YES, but not my breath!
Hey tulsa don't forget to give equal billing to RBC and Raymond James with Raymond James analysts' giving the companies both "Outperform" rating with Buys. Come on now let's be fair.
Oops, my bad. Should have said 1 week! Ah well, a toast to our final dividend! And here's to our new love RAI! Long may she produce!
The deal will be completed within two weeks so I do disagree with your assessment there. However, I do agree the potential for investor euphoria about the newly merged RAI (Reynolds) could send the stock over $88. Thanks for your reply.
Sam, please see my earlier reply to Boost. I am not interested in the LO part of the merger. I am wondering about the potential price of Reynolds shares (RAI) AFTER the merger. But thank you anyway for your post.
"What merger the FTC is going to hold this up for years! A bunch of B/S if you ask me!" - boost1995 May 11, 2015
Well, well, boost seems like a lot can happen in 10 days, can't it! Glad to see you can still change your mind even living in Arizona (that part I am envious living in AZ). Let the merger BEGIN!
For those of you interested HERE is the latest info concerning FMBH common stock dividends and the ex-div date along with date payable. Do not rely on Yahoo Financial info because they can be very poor.
"On April 29, 2015, the Board of Directors of the Company declared a cash dividend of $0.29 per share on the Company's common stock. The dividend will be paid on June 8, 2015 to stockholders of record as of June 1, 2015."
I don't think you really read my original post. I'm sorry if I didn't make myself very clear. What I am interested in is analysts' research on the price of Reynolds stock price AFTER the merger, not Lorillard's which you are quoting at a price today if the merger occurred today. Thank you but I plan to hold onto my new Reynolds shares after the merger and am really interested in what Reynolds price might be. Yahoo has a consensus of $81 a share for the new post-merger Reynolds but I think it should be closer to $83-$87 range based on the new market share for the merged companies.
Again, why? Previous months postings. "Well LNCO is down because oil has dropped precipitously. Now, LNCO is down because oil is coming back up in price." I am convinced none of the talking heads knows what the f%&* they are talking about. Me, I'll just keep taking the distribution. My mantra... if oil is $60 a barrel or above then I will be happy getting my 12% distribution.