STUDENT TRANSPORTATION INC 5.25 PCT DEBS T.STB.DB.A

SNCF

[slimjim11]

According to INK Research, SNCF held 11, 439,000 shares as of October 15, 2015. The company announced they have bought back and cancelled 5 million of those. And Scotia bought and re-marketed 6.4 million shares at $6. With that offering closed, the overhang is spoken for. Now we have 6.4 million shares into new hands, who may be long or short term holders. Short term holders will flip for a quick gain, hence the share price decline towards $6, which decline seems to have stabilized at $6.15. At the end of the day, there are 5% fewer shares outstanding, so there's 1.0/0.95 = 5.3% more cash flow per share, and that's before factoring the dividends that no longer need to be paid. The current dividend yield at $6.15 is 8.87%, and the cost of funds on the line of credit is significantly less than that. So, bottom line, fewer shares outstanding and more free cash flow translates to more free cash flow per share and more dividend security. Once these Scotia-flipped shares land in stable hands, we can expect the shares to rise to new highs.

[Lucky27]

4,000,000 were sold in August 2015. I did not know it at the time but that was when I was aquiring a large position at an average cost of $4.96 Canadian, and a yield of 11.4% USD. The volume you see today is Scotia selling the remaining float. I received a new issue offering from them yesterday as I trade with Scotia I Trade. This could go on for a few days.

[Jmarks1]

The volume is due to Scotia selling the float? What does that mean? The 4,439,243 shares that Scotia had on offer where gone in minutes! The offering closes on the 18th, so it's not those shares being sold. Could be the other 2m or so shares that where sold privately?

[talladega10]

Slimjim11, SNCF held this stock for several years and it would be interesting to know what motivated them to sell out completely, do they know something the retail shareholders haven't been told yet.

[BuffaloBob]

Clearly after 8 years invested as was said in the press releases they chose to exit due to their own issues not the company's. Today's messaging is another great sign. Lower interest longer terms is good to secure.