RE:RE:EXPLODING $17+was it that many were unhappy with the distribution cut or was it that yesterday's press release provided more questions than answers? for me, this morning's CC provided a much more clear picture for the reasons behind the cut, and I think the market is appreciating that disclosure as well as the 3 year plan going forward.
1.2 billion in monetized assets (over 3 years) vs an entire market cap of 1.8 billion... something had to give, right? Plus the disclosure that management would continue with initiatives until the gap closed, the logical end game if the gap persists is an eventual sale of the company, I would guess.
However, to oversimplify the strategic initiative as simply and arbitrarily cutting the distribution to buy back shares, "yeah why doesn't every reit do this cuz the market doesn't care about distributions" is such a profound example of lack of critical thinking skills its amazing. Its this type of thinking that is going to lead some into other investments where they consistently post 1000x a day alternating between saying "this stocks stinks" and "buy right now with all your money" within 5 second intervals.
And I'm very happy at the shareprice gain, lets not lose perspective here too, right. One day is not going to make or break this stock. Today is a good start though certainly. But for those that required the distributions, no captial appreciation is going to immediately put the cash in their bank account or pay their monthly bills, unless of course they sell their shares, and I think many that bought d.un have done so with the intention of holding forever for the income. However, for the rest of us, yes today is a good start.
Scotia out with a new d.un report $25.50 price target and pleased with the Dream's corporate activity.