Wow, never mind. What I mean is that, basically, no body can predict the market or a stock unless you know something special that will surely matter, while others don't know.
The common shareholders receive dividends.
Those convertible bond holders enjoy the conversion share price with the discount equal to the dividends distributed to the common shareholders plus 4.5% interest, in the same period of the cycle.
That is it.
It is FAIR. The convertible bond holders deserve the discount, deserve the 4.5% interest.
Remember that only 60% of net income is used for dividends. That 40% of net income are used to reduce the debt, buy back shares, ....increasing DHT values overtime.
The share price will go higher and higher.
The convertible bonds issue is not the reason for the share price staying at this level. The reasons are the overall market problem and the shipping rate going down. For DHT, how the overall market goes matters more.
I am ok with 30% hair cut of CPLP's 20% revenue. The rate charted was a few times higher than the current market rate. It's better let the vessels stay with HMM. Thanks to the conservative management team, the management has prepared the worst case for that in case CPLP has to reploy the vessels. The management said, even if the worst case happens, the current level of distribution is sustainable. Most likely, the worst case won't happen. We will see what happens after May 16.
you hold the shares and receive the dividends, they will get the shares at the equivalent discounts to the dividends distributed. It sounds fair. They invested the bonds, they deserves the interest. I don't think the share price will stay close to the level at the striking price for the bonds holder.
The fact that the current share price is quite low is because of the overall stock market and the shipping rate going down recently. Look at the share price several months ago, it was above 8. It will go there again and going up more.
At the rate a few times higher than the current market one, 35% cut is totally fine with me.
The problem is that you never know how the stock you invested goes tomorrow. Never put all eggs in one basket. No matter you long or short for a value stock, you need to hold it long.
600 shares at ~$118.
(1) questioning the number of their ACTIVE members. What is their definition of "ACTIVE"?
(2) not confident on the number of their revenues.
(3) Worth of market value $334B?
Preferred is preferred, they are preferred. I am ok with it. Think about it, the management is just conservative, which is good thing in the long run. They cut the dividend to this level, so that, like they said, even the HMM restructuring is not successful, CPLP will be fine and the dividend is still safe as well. Not mentioning that, as far as we know, the HMM restructuring will be ok, 20% hair-cut for the 20% revenue is not that bad.
Going through the financial crisis since 2008, it has been a constantly profitable company. With a conservative management team, 10% sustainable dividend is decent, it is good thing, Don't be greedy.