RE:IS THIS COMPANY ON SALE OR NOT
Snowball1843657 wrote: I bought a half postion at these levels waitng for the stock to move one way or the other any comments?
This company is definitely on sale right now.
It has potential to drop further or be sideways for a while, it is more diversified than is has been in the past, it has growing distribuable income (FCF), but it does have risks also.
The current dividend yeild is 9.4%, it will likely raise its dividend anouther half cent after the most recent acquisition loan is paid back, should that play out your looking at 9.6%, in the past 5 years it has an average yeild of 8.1%. Distribuable income from last quarter projected over a year was 27.4 cents and by company projections it should be closer to 29 cents over the full year, so your $2.61 share price today is buying a 10.5-11.1% yeild of distribuable income.
If you wish to reverse the value based on average dividend payout in the past 5 years, theoretically you get an average price of $3.03 (.245/.081=3.02469) or $3.09 (.25/.081=3.0864) if you accept my expectation on the higher payout in 6-9 months or so... In March this year it traded at its lowest yeild (in a while) at 7.25% so using that to project a top area value gives you .245/.0725= $3.38 or .25/.0725= $3.45... So I would say reasonable expectations are that you likely see the share price return to above $3 to nearly $3.5 at the higher end. So 20-45% SP gain upside + the dividend payouts can be projected going forward.
Many of us around here have been adding the past few months on this dip...