wynner: RE $97mm dividend being DUMBwynner, think rationally for 15mins.
Why would they spend $97mm on a one-time discretionary dividend rather than reducing that equivalent in mortgage debt currently floating at 7.8%???
Seriously, man, think about it.
Paying out that dividend is now going to cost them $7.5mm/yr in interest charges at 7.8% rates. Gross!!
That dividend was a costly decision, it shows they have no CFO and no common sense.
All this while RE values are teetering on the edge of a double-digit selloff and costs to carry them have rocketed north of 7%.
Common sense, think about it!!
Maybe they go private but that's no reason to buy a business.
I could see a privatization here if the company gets into Financial distress after overborrowing to buy overvalued development properties.
Won't be fun if the takeover is at $10/sh.
That's a Fakeover, bro.
Not good.