RE:RE:New Rights Offering Yea I believe your right that the price dropped below that offer price previously a few times in the time I held held it and it may have as you said weeks after, but because of the dividends received I dunno that I've ever been in a red position on total return from when I purchased it. When I bought it back then I wasn't monitoring as closely as I do now, I checked less frequently as I was confident in my purchase and I wasn't as familiar with my monitoring tools. I would also mention the last one was more dilutive than this one...
Ive been doing thinking on this, obviously if they are offering us shares @ 15.65 and usually like internal DRIP programs you get a small discount on the new shares purchased, they likely feel thier fair value is in the mid 16 area and feel we are pretty over bought which is why this offering looks attractive on the announcement. As shareholders, you think about the shares we just received in the special payout, their value was worth more than these rights are. So the returns we have received in the past 3-6 months and the share price climb has been very substantial and we have done amazingly recently here.
They are also projecting 10% growth over the next few years, and this offering will boost thier cash stockpiles for lending on new mortgages when we normalize outta this pandemic, I think longer term the outlook for a re-raise of the normal dividend looks very positive 6-12 months out. But short term I think we are gonna have a minor price retreat while this process takes place.