Wynner the Winner of WFC*yawn*
Approximately $22.7mm funds from operations through 9mo of 2024 fiscal year
Shares O/S are 32.4mm
That's $0.70/sh FFO
Where do you find the $3 dividend was funded from hotels revenues?
You didn't, oooops.
Here's a riddle:
If the monopoly man borrowed $100mm to pay a dividend he couldn't afford, what's the annual interest cost at 6% mortgage rates?
Answer: Dumb BOD, smells fishy
Carrying Value
$682mm
Market Cap
$689mm
I don't like those apples.
In fact, values of these assets are set to decline as 6-7% mortgage costs start to take hold.
Precious NAV here will fade, and that may be the cause of -34% selloff.
I think WFC has another 21mm shares in the war chest. If/when price of shares gets bloated in open market, they may seek to sell equity.
I'll repeat previous comment: $97mm dividend was a waste of money, they needed that to pay down debt or set the stage for a $100mm share buyback
Best move would have been buyback, easy
Anyone investing serious money into public companies, they look for quality management and quality BOD. There's been a failure here, they have the opportunity to learn from it, time will tell.
When I smell executives playing games with shareholder's capital, that's my cue to sneak out the fire exit dividend in hand.
Stock still undervalued, sure, but who knows if that will change. Maybe this discount is because of Capital Mismanagement and concentration risk of influential shareholders here.
Not good
Maybe you can shed some light on this one........................................
Why did Bruno Wall get 400k shares at $9.97 when the share price was $16 in the open market - answer me that, Wynner.
Right after the ill-timed, ill-allocated $3 dividend.................... interesting.
That $97mm decision pays its own NEGATIVE dividend, it's called interest owed. Shows up at about $6mm a year in extra cost to ALL SHAREHOLDERS.
DUMB