At what about 2 cents per share. That would create about 20 billion new shares. Reverse split about 1 / 1000 ( one new share for 1000 old ones)......Would net about 20,000,000 "new" shares worth about $20 each. Market cap about $400,000,000. Current holder's shares would be so close to worthless that you'd be talking about 1/4 of current value.
Don't touch this thing or similar ones like SD, HK, or SFY. Many others in that boat too.
Kel.................a former holder in the $4 area not that long ago.
Sorry I threw that snake onto CPTA. Just my honest opinions. I think it was about 14.95 when I posted this original message.
BDCs by definition have portfolios that are "non investment grade." In fact, I'd say most are ungraded, but certainly well below BBB- (S&P).
Just read the report from after yesterday's close. Not a current holder.....
Adjusted NII of 25 cents
NII of .215....reported as 22 cents
NAV @ 12.23 vs 12.46 3 months ago.
Div cut to .075 monthly, was .10
Stock trading around 8.75, down about 47 cents. Hit low of 8.54 this morning.
Thoughts............with a current (updated based on the .075) yield of 10.3% and a discount to NAV now about 28.5%. Might get a little cheaper based on the yield. Same with the discount to NAV. I'd think down in the 8.50 area, assuming the new div is safe for several months, I might be a buyer. Can't see it getting much below that area. Have used recent price action of FSC as a rough guideline here.
Just my thoughts.........Yours?
Cleaned out all FSC bought Friday @ 6.13 and earlier at 6.55. Did very well. Sold UGAZ @ 2.09 bought @ 1.84. Have enough natgas exposure with CHK and SWN positions.
Are you saying that the bond holders and other creditors will get the cash and the stockholders will get the payment in shares? If that were the case, the stock SHOULD be trading higher, not lower. Bondholders are first in line I thought. Would they be willing to give up that position? Just glad I got out of this several months ago.
Will buy the "ASSETS" for $14 million. Debt and current liabilities add up to over $15 million. Most of the debt holders will do OK. Nothing left for common shareholders except the hope for a better offer (very unlikely).
Kel..............sold in May around 30 cents
The good thing is we won't have to wait long to find out whether we're right or wrong. Monday (pre-open) will bring a resolution.
I read the transcript from the AREX concall. They were asked about possibly picking up properties for sale by others. They cited a situation where currently the "bid / ask" spreads are very wide on prospective deals. Guess that means potential buyers are giving lowball bids and sellers still are asking (hoping to get) too much.
Also due to announce more dividends. Last announcement was on Feb. 9th, when they declared for the next 6 months, up to the Aug. 12th X-div date.
How about this correlation? The cents on the $$ the bonds trade at equals the cents per share of stock value. Bonds trade at 40 cents on the $, stock trades at 40 cents.
Kelap's case holds no water. Implies that some entity has the ability (much less the desire) to purchase all those bonds at that discount. Who would do that?
Kel............just an observer
Been wondering if those CEFs that hold MLPs will be able to reverse some of those deferred tax liabilities on their balance sheets. Those deferred taxes were set aside (on paper anyway) to pay the taxes due on the sale of profitable positions. Much of those "potential" profits have disappeared with the recent poor performance of the MLP group.
Kel...............still holding FEI and FPL