Management's explanation for the buyback as stated in the 11/12/15 3rd quarter earnings call was that the $100M share repurchase would "accelerate the return of capital to shareholders" and " drive improved ROE & EPS ." The dividend will be discontinued after payment of the .25 dividend on 11/20/15 whether a shareholder chooses to tender or not.
Obviously the common share price is being held back by concerns over a possible cut in the .64 dividend. Yet the preferred B shares continue to decline in price despite a current dividend of 12 %. Not only are preferred dividends much safer than common, but the co. did announce that the money authorized for repurchase applies to both common and preferred shares. Unless RSO goes belly-up, the return on preferred shares is remarkable. What gives ?
I appreciate your insightful analysis of GURE, and am encouraged to hold the stock based on your optimistic outlook. Yet positive developments ( bromine pricing, NG holdings ) seem to have no positive effect on the share price. I believe that management has no concept of the term " shareholder value " as evidenced by their failing to consummate the $2M repurchase authorization despite having (supposedly) $120M in cash .
The current FFO payout ratio is 63% , so the co. could easily increase the dividend. The dividend has been at .17/quarter for the past year and a half. Dividend aside, share repurchase is another way to reward shareholders. In this regard, 1.6M shares out of the 10M share repurchase authorization ( July) have been repurchased. I continue to believe that LXP is undervalued .
I'm sure that a number of shareholders, including myself, have contacted FSC in the past . Obviously FSC's management has little regard for its' shareholders. Maybe this initiative by River North will produce some needed change. I would encourage every shareholder to make FSC aware of their support of this initiative.
As a long-standing, long-suffering shareholder, I am rooting for the co. to do well. But let's face facts- the co. announced a $2M share repurchase one year ago (17Nov2014). They currently have over $120M in cash . To my knowledge they have not bought back shares. Conclusion -Management has no interest in shareholder value ; and no intention of returning cash to shareholders via buybacks or dividends. Talk of a $30 stock is lunacy. Get real !
At the time of my August 27 " Undervalued " posting, the share price was $17.06 . Since then co. paid .23 in dividends. Even with today's drop , the share price is $19.56 . I stand by my earlier posting.
"20.00" seemed odd to me ;last conference call was at 8 AM. I immediately emailed both Investor relations and headquarters for clarification , but no response yet. When making inquiries of a number of companies in which I' m a shareholder , a prompt response is always forthcoming. GURE's total indifference speaks to their lack of regard for shareholders.
Today earnings report from AYR was apparently not good as evidenced by the 10% drop in share price. I suspect that this accounts for the price decline of FLY, AER, and AL on a strong positive day for stocks. I still like AYR, but will wait to see is today's report triggers any downgrades.
As a long-standing MCC shareholder, I, too, am interested in Pacman response. I continue to be frustrated with management. Early in the year they announced a $30M share repurchase authorization; to my knowledge they have only repurchased $9.5M . I assume that MCC's energy holdings have been a damper, yet energy investments represent only 6% of assets, and these are mostly mid-stream and first-lien positions. In the most recent two quarters, NII has covered the dividend. Stock still well below NAV. What am I missing ?
As a holder of several thousand shares of RSO-prB, this would seem to be a no-brainer. Yet I'm always wary if something seems too good to be true ; if not I'd add more shares of the preferred. In August the co. confirmed an $80M authorization to repurchase equity and debt securities . Seems to me that repurchase of preferred shares at these depressed levels would be a good move.
During 2nd Quarter earnings call, mention was made of an $80M repurchase of equity & debt security. We'll learn how much was actually bought back in the November earnings call. I continue to be very disappointed with management, but I take some comfort that the full .64 dividend was paid and in the insider buying in August.
As a former AYR shareholder, now looking to re-establish a position, I cannot help but notice that Marubeni keeps increasing its' sizable position. Does anyone know how many shares they now control ? Thanks in advance.
I have no quarrel with your assessment of oil price action. Obviously some BDCs with energy holdings have been penalized for their energy exposure. Yet this exposure in the case of MCC is 6% , not all of which will be lost if oil prices tank. So with regard to MCC, and possibly PNNT , I wonder if the energy exposure "risk" has been overdone. Your thoughts would be appreciated.
Please explain why " they could only buyback below $1.20" ? Considering the hugh discount to NAV and persistently depressed share price , share repurchase should be a no-brainer. The company's failure to do so, even after announcing a repurchase authorization almost a year ago, indicates management's disregard for its shareholders.