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.
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 ?
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 .
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 ?
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 .
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.