One wonders with this increase of outstanding shares, will they keep the dividend the same. The last time they did this they did kept it, in fact, I believe they even raised it the following year. Maybe this will come up at the conference call on December 1. Another little benefit of this rights offering is that if you hold the shares in an IRA or a brokerage firm, there is no commission for exercising the rights and buying the 1 for 3 more shares.
They say it will be. They gave such guidance at the 3rd quarter earnings report. One thing to think about is that there are one million more shares out there than last year. That will lower the per share earnings by a couple of pennies from last year.
If you want to know all about UBTI, read carefully his reply to my post that I was puzzled. He gives the complete history of IRS reasons for instituting this tax for charities and non-profits, and then the IRS including the tax for holdings in IRA's. The thing that is confusing is the word "unrelated" The income is not unrelated to the company, it's unrelated to non-profits and holdings in IRA's.
I'll just say less than a 1,000 shares. I just got out my K-1 from last year and Part V (UBTI) amount was actually a negative figure. Go figure??
Thanks greatly. I now get it. I did a little research on the internet and in one explanation, the tax was called "arcane". Not sure why I really need to worry about it since the amount was well below 1,000 on my K-1. I do hold the stock in an IRA. You must be a CPA or a tax attorney. Thanks again.
Very puzzled by your response. UBIT stands for Unrelated Business Income Tax. I don't see how the refinery income would be unrelated business income for a MLP.
How do we get the NAV for UTG in Yahoo? I'm assuming it's higher right now than the market price but I just want to check. I used to be able to get this in Yahoo but I'm old and I've forgotten how.
I would agree. I have NTI in my IRA. Last year's Unrelated Business Income on my K-1 was miniscule. No 990's tax form and tax for me.
The way things turned out it was a good transaction. To continue, you should have bought back on the 12th. The entire energy sector was down big on the 12th.
The Fed is going to raise interest rates in December. The whole utility sector is down a bunch. Any company paying a good dividend is down. It was the big jobs report. What is good for the economy is bad for utilities, go figure. Buy the banks. There up a bunch today.
I was no math major but I have determined what exactly we would be getting for each share of NTI as of the close of WNR today according to the terms of the buyout offer. It is $26.7906 per share. That's just about what NTI is trading at. Of course, if WNR continues to crater in price that received amount per share will drop also. Let's hope that conflicts committee asks for a better sweetened deal.
Probably less expensive for them. It does save the current share holders any commission fees when buying the shares through the rights plan. The thing I worry about is the price set to purchase the shares before the rights expire. I think the last time they did this the price was lower than the current stock market price at the time and, thus, the market price dropped. The market price did eventually go back up, but that was a rising market in general. And, of course, there's dilution considerations with more shares in the float and what will happen to the amount of the monthly dividend.