RE: RE: RE: A good trade Dominion can pay in stocks
It owes about $2.5 million. It could redeemed the pref with about 10 millions units.
Actual book value of Dom is about 2.1 million and the book value per unit is about $0.10 (21 millions units)
After redeeming the pref the new count of units would be 31 millions (50% more) AND the new book value would more than double to 4.6 millions (because its liabilities would decreased by 2.5 millions, being the value of the redeemed pref).
The new book value per unit would be about $0.14 (40 % more then actual).
With its actual free cash flow, DOM could easily buy back part of its units every year.
I can't see an opportunity for bankrupcy in that situation.
By the way Michael Blair, a director and major shareholder, bought 178,000 units of DOM last week