The web site may be up, but I've had no luck in transmitting an email to management. What is your experience ? My occasional queries / comments to the company ( both management and investor relations ) have never garnered a response.
I can understand their reluctance to initiate a dividend if the funds can be be used productively in growing the co. But I cannot understand the failure to repurchase shares. This not only sends a positive message to the investment community, but rewards shareholders who have endured well over 5 years of no appreciation , or of losses, on the stock. I encourage my fellow shareholders to communicate this to management and to Investor Relations if you agree with my premise. A $2M share repurchase was authorized several years ago, but never consummated. Considering the cash on hand, a five million share buyback is quite doable.
As of 3/5/16, the co. noted that if all energy investments were put on non-accrual, NII would decrease by .05/share/quarter. Of the 11 firms that have been on non-accrual since the firm began, 80% of capital invested was recovered. The co. has .53/share of undistributed income that can be used to protect the dividend .
Alan -I respect your evaluation of the co. and your intelligent postings. But earnings improvements, bromine prices, NG potentials and cash accumulation seem to have no effect on the share price. What is going to propel the share price upward ? Considering that the cash/share exceeds the price /share, why isn't someone offering to buy the co. or to take it private ?
Despite multiple positive earnings reports, despite recurrent optimistic projections by management, the reality is that GURE continues to trade at a fraction of its NAV and below the cash per share. Management has done nothing to enhance shareholder value . They have failed to repurchase shares, an absolute no-brainer. The only hope for shareholders, of which I'm one, is for someone to buy this undervalued company .
While the very high dividend on the common shares implies a significant degree of risk, i don't understand why the preferred shares have dropped so much in price . The return on preferred shares is quite high considering the safety of the dividend on these securities. Can someone shed light on this enigma ?
For a co. with portfolio growth of 37% a year since the IPO, with FFO growth of 9% a year, with a safe 9% dividend, with an investment grade credit rating,and selling at a sizable discount to NAV, STAG would seem to be very undervalued at the current price.
Alan - I tried to contact via email address that I've used in the past, but it bounced back. Do you have a current address for her ? Actually, I don't know why I bother because the co. has never responded to legitimate shareholder queries and comments. Your intelligent posts are probably what keeps me from abandoning this position. Thanks !
In the past I could reach Helen Xu, in management, via email ;not that I ever got a response to my questions or comments . Now her email address is no longer functioning. Shareholders can only hope that some of the institutional shareholders are able to influence management to act in the interest of shareholders .
I have followed the BDC sector for several years ;and, sadly, currently own several BDCs . This sector seemed to be appropriate for income investors. I am at a loss to understand why a number of BDCs with steady dividends and selling well below NAV are floundering. I am aware that excessive management fees and energy exposure have contributed to the fall-off in share price.
Two examples ( these are NOT recommendations) of undervalued BDCs , IMHO , are Medley Capital (MCC) and New Mountain Finance (NMFC). MCC has an NAV of $11 yet sells for about $6.46, with a 15% dividend. Historically the NII has covered the .30/quarter dividend ;estimates for the next 2 years also cover it. 5% of the portfolio is energy related. Share repurchased recently increased to $50M. Management fees recently reduced. Non-accruals = 2% . In December, two analysts re-iterated an outperform and a buy.
I have no opinion on CMO common shares. I am watching CMO preferred E , which pays 8% at the current price of $23.17 ; it's a preferred that I have owned in the past.
I do own shares in CYS. While the co. did lower the dividend by .02 in Sept,2015, it does cover the current divi. CEO Kevin Grant is quite knowledgeable. Currently selling at over 30% discount to book . Continues to repurchase shares ("Best use of capital now (10/21/15) are buybacks. As of that date still had $184 M in repurchase program. I'll await next earnings call (probably early Feb.) before deciding whether to add shares .
While no stock is immune to a sharply declining market, I continue to view ARI positively -recent dividend increase , implying that the dividend is secure ; ROE = 12.8%, up y-o-y ; $1B in loans completed in 2015, all at floating rates robust pipeline, selling at discount to NAV , insiders own 17% of shares. In this low yield environment, 10% dividend continues to have appeal for this income investor.
While the yield based on current price seems too good to be true, I believe that MCC can maintain the current .30 quarterly dividend for the following reasons - historically co. has covered dividend with NII ; estimated earnings for next 4 -6 quarters will cover current dividend ; recent increase in share repurchase program suggests that co. has cash to cover dividend .
I was told by IR in early Nov. that energy exposure was 15%, but that this included utilities. During the 3rd quarter earnings call, the co. stated that " the energy exposure is senior debt, backed by solid assets." We shall see.
Alan - as a GURE long, I am encouraged by your usually optimistic outlook. Yet I cannot understand how a co. with $2.60 per share in cash can be trading in the $1.50 range ; or why the co. wouldn't buy back shares . I have found management & IR unresponsive to shareholder queries. Apparently the term " shareholder value " is not translatable into Chinese.
I do appreciate your insightful posts on GURE. The two ways for a co. to "reward" shareholders are by instituting a dividend or by buying back shares. This management has not seen fit to buy back any shares (to my knowledge ) under the existing trivial $2M share repurchase authorization. So talk of initiating a dividend seems unrealistic . For this management, "shareholder value" is an oxymoron.
While the possibility of a dividend cut is always a concern for BDC investors, PNNT has .53 per share of undistributed income. This should provide some buffer if future earnings fall a bit short of the current .28 quarterly dividend.
It is my understanding PNNT's energy exposure is " senior debt backed by solid assets "( source -11/10/15 earnings call ). The 6% energy exposure quoted below is accurate. I question the comment about PNNT "owning " two energy companies.