Don't feel too bad. My father (forced into retirement in 2008), despite my pleading, went to 100% cash, all at once, in Feb 2013. He doesn't need to use it for a house or anything - it just sits there as if he shoved it under his mattress. Oops. Being stubborn has always been very expensive for him.
Good luck to you in your retirement!
Let's put it this way: I have never bought one share of AER. All of what I had came from the GLS sellout. I sold all my AER a couple years back at $11.70, to buy FLY at around $10. For the dividend. It looked like a really smart trade for the next 18 months. But as of yesterday the result: I collected $5k of dividend and left $25k of capital gains on the table. :-/
FLY seriously lagging over the past 18 months...They need to do something soon. Something big.
"Maybe a piece of a deal with AER for ILFC."
My thoughts exactly. I really hope it's that. Because otherwise, it could mean that we have overextended in order to compete in the bidding for those assets, but lost. Then what?
Whatever the case, the deal will certainly put a lot of new eyes on the sector. Maybe it will become less of a value play as a result...one can hope.
Be careful. As we all know, it can get cheaper. Much cheaper. I learned my lesson about margin in March '09. I was buying things on margin by the bucket loads in Jan-Feb and then got called out of two positions (DOW and PGF) on the final whoosh down in March, locking in a significant loss. I've made an absolute killing on the positions I was able to keep (especially EPD) so overall it worked out. But it still stings - knowing I was right about those securities but it just didn't matter. When the market gets irrational it will take you down with it.
For the same reason you don't sell your stock and hold cash. A penny saved is a penny earned. This buy back saves $1.3M per year. No way to park cash and get that kind of return. As to why the money was not used to pay debt, I am not sure what the terms of this company's debt instruments. are.
No, and that is the motive for a company like this to buy back the shares. To me the results say that Gross doesn't find other investments that are available in the market as compelling as buying SLRC stock at 7.25% yield. A dollar saved on paying the dividend is a dollar earned for shareholders. It's better than holding cash, that's for sure. But it's not a good sign for real growth, only "fake" EPS/DCF growth by making the denominator (share count) smaller. Not great news for SLRC holders, but I have to agree with Gross. I haven't bought anything in awhile - most stuff seems to be fully valued, and knowing that rates will be going up in the near future doesn't help matters for income investors. Holding treasury stock and keeping the dividends may not be a bad move here....but it isn't going to help short-term performance.
You may be surprised. Watch the volume on the open. I bet at least half of those 12M will trade on the open. It may take a few days to get the last few million, but I think buyers will come out of the woodwork for this one. I did.