No doubt the REITs in 2009 were the place to be if you had money to potentially lose and a strong stomach. I got in the common at 1.25 and started in the preferreds at ~8.00. My grandkids still have them in their education accounts but I sold out the PreF in the mid 24s. The divi was wonderful but the common has appreciated over 40 times from the lows as opposed to 3+ for the pref - the winning strategy (which I did not do :( was to reinvest the dividends into the common. Probably would be a good play doing it that way with ARP.
Could be a simple Buy at the Close order that took the average price over a set period of days. The common also dropped right at the close.
No surprise the MM's are in control - after waiting a while, the other 2000 filled at .87 (bid/ask at the time was .865 and 89). Looks like another 10K filled at the same time so maybe I just swept up with a big enough order that the MM wanted to fill. Bid/ask immediately back to .83 - .87.
Yes, I had to slap myself (wife not around at the moment) about the ridiculousness of trying to finagle 1-2 cents ..... raised the bid from .85 to .87 and got 1000 of the 3 I have the bid in for (actually got 100 at .855 lol). the fact 2000 of mine are sitting there with the ask moving up from .87 to .89 shows there is nothing for sale in between.
Got some NRF June 17s a little while ago for 1.85 when the stock was at 18.80. I know the x-div will probably be May 15th but the May options were bid/asking strangely and the Junes get me through whatever run-up we get (or run down lol). Just thought paying a nickel for the IV was pretty low.
You can at other MLPS (before the oil price crash) and they generally appreciated 5-10% a year in price (again a broad stroke) and then add in the pct of distribution (5-10%). Several things to keep in mind, if/when GRH goes MLP it will get a good pop (look back a year when it was announced) and it has been hammered in general with the market and their struggle to get all the parts working. I am not talking about limited upside from 88 cents.
Because MLPs are classified as partnerships, they avoid corporate income tax at both state and federal levels. Additionally, limited partners may also record a pro-rated share of the MLP's depreciation on their own tax forms to reduce liability.
So the first thing is that we (partners) now receive a distribution and for tax purposes, not all of that distributon is taxable (the feds get their pound of flesh on the back end when we sell our shares - whatever is not taxed lowers our stock basis by that amount). The company can lower their cost of business so they are better able to make deals/buy other assets. It also slows down the possibility of stock price appreciation as most of the profits are passed along and not added to the companies value.
Nicely done - appreciate your ability to "milk" a slow market in regards to NRF/NSAM. Never knowing when and for how long I will be able to be at a monitor any given day, I stick to the options but still appreciate the forward guidance/insights. Did very nicely on NSAM last week and bought ITM April and June calls on NRF on Tuesday. Already up .25 to .30. Not as liquid as the stock but if they keep issuing shares might get more so lol.
I guess the bet is how quickly does the price recover - I have buys in for April and June $17 calls but hard to figure out how much the divi is factored in. If it bounces 50 cents by the end of tomorrow, good buy .....unless it drops farther than that on the 5th. Of course, that is all about "flipping" mode. I believe 100% that the price will be higher than this in December so buying long term is a no brainer over a few cents.
It is the sale/buy after the buy/sale that is the gotcha - you will get a warning message that you are using "unsettled" funds to make a purchase and if you then do something with that purchase before the next 3 day waiting period you could be in "trouble".
I have Mar. 20th $20 calls at IB with a sell in today for $4.20. The price got to $24.16 - so basically 3 weeks wasn't worth 4 cents of vig.
Yes, the thinly traded stocks ITM options always ridiculous. Have had MLP options on the runup to divi (before this crash lol) that I had to take a nickel loss because not enough money to take possession ( 60-100 options on a 40-70 dollar stock was a little heavy). Should have taken the time to see if opted to convert and then immediately sell if they would have let me. Is there a 3-day wait to take possession after exercising?
Same as with every company - one time charges, tax impairments, debt buy back, etc. GAAP vs non-GAAAP. The write off (write down?) of the 3 rigs ($1.47) put out to pasture was a paper loss so I would say .90 is a good indicator.