RE:RE:RE:RE:Rights offering
Strohs16 wrote:
Oh, lol, I knew the dividend was upcoming, never thought if I would get these new shares in time for it....guess time will tell. Trades on the 7th would settle on the 9th I guess.
The rights are still showing in my account as of now.
I was surprised myself when I noticed the closing date when I re-read the release. I thought we received the shares the day after the Record date for the dividend. I must have just been date overloaded be cause there were so many announced in the original release.
Those new shares receiving the dividend is almost like paying ourselves with .34 cents of the offering coming back to us, but on paper the maths will work out differently over the year when it comes to taxes and required returns to share holders.
Ive been expecting a share price drop much closer to the offering price, but it is yet to happen meaningfully, I really want to be wrong on that call as it is based on my foggy memory on what I believe happened last time several years ago. I'm sure when the new shares hit the market the people much smarter than me will figure out the new value of company per share.
I feel the outlook is very strong for MKP, but also that currently the shares are a little ahead of themselves at the moment so growth may show a flatter line unless they increase the distribution, but that is likely a late year possibility. Upward movement will depend on how well they utilize the new funds, and according to media reports about mortgage rules and the housing market, everything sounds good for the secondary market we are in.