I can vouch for this statement. I first bought the "A"'s in 2008 and years following and the latest, the "C" shares and, yes Davis, some common despite my rant of a week or so ago. The preferreds have not missed one payment in all these years and financial trials.
LJ, thanks for your comments. I can't prove nor will I try to prove my "hint of desperation" comment. "Hint" says it all; just a fleeting shadow crossing my investment path.
I do have a question about the payout, what do you think is the reason behind the cut? Davis' seems reasonable to me. But why was the div increased in several steps over time to the [now reduced] level if those prior levels of payout could rather have been utilized to accomplish what is now described as a better use of funds to grow RAS?
Indeed the lemmings reacted to the slightest of interest rate increase hints and began to sell. Did you note the buildup in media articles about it? That is when RAS and similar shares I own began heading south. A 1/4% increase causes this?
Anyway, I hope this is understandable. I have noted over the years that there's never an end to Monday mornings for this quarterback when I am reading what I wrote and posted the day before.
My use of "desperate" is due to two sudden events, the dividend reduction and raising cash at for less than the shares' alleged value. They came out of the blue and in quick succession exacerbating a shareprice drop that started with the hints of a fed increase in rates. The puzzle with the div payout was why was it so high in the first place? REIT's are required to pay out 90% of earnings, isn't it?
My own feeling is beginning to be that the div was a figment of bookkeeping. There are a number of ways to interpret the money flows in this company's business, as you know and mention.
Davis, I generally give your opinions a positive mark and have for years. Your comments on the div and money flows backing it would be appreciated.
Davis, with management's moves of late, we don't need any financial news. We are now, again, below the share price where mutual funds will purchase our shares. These moves of late, have a hint of desperation to them.
Lots of ifs in CLMT's story but there was a worrisome flurry of buying at what now should be seen as the "high" in oil prices for awhile. Thus the debt that paid, in part, for the increase in infrastructure that no longer pays for itself in some instances.
I would expect an asset sell-off and or a dividend reduction to cover our costs of borrowing.
Timing is everything.
I figured when the Tabernas were sold, the sky would be blue again. Then the fine print was we no longer received $155M in management fees. Then the press began the 1/4% raise by the fed broken record. Then we had our employees sell shares at a discount to the existing market price to fund more loans. Then our employees halved the dividend. Now there has been hundreds of millions used to create a tranche or whatever it is. Was this a positive? Was it worth but one or two pennies to the share's price? That's it? Better shares were repurchased and the divs saved. I am beginning to think we need a salary based on performance, not directors' feel good deals with management under the now discredited fantasy that incentives enhance managements' performance. I see no reason to give any of management or the board members any options and other incentives until WE also begin to benefit. This is, after all, OUR company. WE bought these shares to prosper, not to experience the current situation.
Despite all the moves current management undertook to polish the terribly tarnished image, other than a dividend that we now find is not sustainable what is gained after all these years? These shares would not be listed on the NYSE without the spilt of years ago. In fact, wouldn't the shareprice once again be under a dollar/share?
If I understand all I have read in years past, we have sold off cash producing assets to a creation of management, IRT. I presume we have used up some of our tax write-offs to polish the bottom line. If we need $$$ why do we still own 20 something acres instead of producing properties?
I assumed this last deal would be a positive for the share price but it has not responded.
Something is rotten in Denmark even accounting for investors' lemming like behavior.
The market can be rational in the long term. That it feels the shares of RAS are worth the current price after all of managements' efforts, speaks loudly to me.
I'm glad you mentioned Picken's resignation. His being on the board was a selling point from an article in Seeking Alpha recently.
Judging by your first sentence I would guess you are unaware of the self-appointed savior of the known universe and all realms yet to be discovered, mr. obama.
The decline in the price of oil also causes shareholder equity to decline as the oil we have on hand falls in value. . This impacts share price.
"not fallen off after thanksgiving....." Isn't that a short time in which to determine if your sales are off?
Noted your comments on sales to industry and the highway bill's passage; thank you. Very useful information.