The trade it while increasing their position. No big deal.
The big deal is they keep increasing their stake. That means they are bullish.
I think each broker may do it differently. That's why I asked.
Scottrade is for idiots.
Just put him on ignore.
Im guessing Ive been trading stocks nearly a decade longer than this punk has been alive.
Mine was $43.0788 on 6/9 via Fidelity.
$42.1999 on 3/6
$40.8721 on 12/6
$43.977 on 9/6
I believe there are fees no matter who you do dividend reinvestments with.
I believe fidelity said they buy shares for everyone but there is a commission.
Of course, its hard to know who is getting the best price.
Maybe we could all post out dividend reinvestment prices and compare ?
Mine are with fidelity and I will post them later today and hopefully others will do we can compare.
I don't expect a material difference but lets compare.
I thought it was less than that.
But NOLs and a potential deal are whats interesting here.
Becker Drapkin hasn't bought since Feb so Im inclined to think they aren't buying more.
And maybe that's good. Maybe they are not allowed because they have material non public info ?
We could get a pop when a deal is announced. The downside is nothing could be announced for 6-12 months and there is a small possibility they buy something that shareholders don't really care for.
Its a bet on Becker Drapkins ability to do something with this "shell".
I think they will. When is the question.
Its tough for such a small company to raise capital.
All in all, its a reasonably fair deal. At one point I was considered they would have to price it under $2.
And heck, they probably could have sold the 2.83 million at $2.00.
So the deal they did strikes a good balance.
They can raise more in a year or so if the market price improves and they put the capital to good use.
They can immediately pay down the high cost debt to friends & relatives of board members.
In hindsight, selling out at $4 would have been the right move. But who knew in advance where the top would be ?
LOAN will need to renew their deal with Sterling by Dec. but that shouldn't be a problem and I expect with the new capital they will even raise the limit.
They project net proceeds of $4.3 million which means it cost us 14% to raise the capital which means the company netted $2.451 per share.
Could end up being a little more if they exercise their overallotment shares.
The current $2.53 is an 11.06% yield. Probably worth owning. I wouldn't be surprised to see it go to a 9% yield
which is about $3.11 within 6 months.
Downside risk seems very small. Its hard to imagine the shares going to $2 again. unless they announce a first time ever write down or something.
Jim Wade, who possesses 35 years of retail expertise, has been appointed as an independent member of the Company's Board of Directors, effective immediately. He will serve on the Company's Audit Committee.
Wade currently serves on the Board of Directors and Finance Committee for Advance Auto Parts, Inc., the largest automotive aftermarket parts distributor in North America. He first joined Advance Auto Parts in 1994 as Treasurer, and retired as President in 2011 with responsibilities including store operations and both the DIY and Commercial businesses. Since 1994, Advance Auto Parts has expanded from approximately 300 stores to over 5,200 stores and increased revenue to $9.3 billion.
Wade also currently serves on the Board of Directors and Audit Committee of Lumber Liquidators Holdings, Inc., the largest specialty retailer of hardwood flooring in North America, in addition to providing leadership on numerous non-profit, industry, and educational Boards.
"We welcome Jim to the Tuesday Morning Board of Directors, where his retail, logistics and operational experience will be highly complementary to the Board's ongoing work," said Steven R. Becker, Chairman of the Board. "In particular, his integral role establishing Advance Auto Parts as a leading customer service-focused organization carries important lessons for Tuesday Morning, and we look forward to benefiting from his expertise."
Earlier in his career, Wade held senior management positions with S.H. Heironimus, Inc., a regional department store company, and American Motor Inns, Inc., a publicly-traded hotel franchisee, and served as an accountant at KPMG.