North American Financial 15 Split Corp T.FFN

FFN share consolidation

[twoofus]

The only news on FFN share consolidation on December 19, 2019, that I could find, only came out after the market closed. Looks like the same will happen tomorrow.

[NoShoesNoShirt]

I have a stink bid at $4.00  AM I too high?

[twoofus]

That was meant to be December 13, 2019. Sorry about that.

[myNEXTmillion]

I agree the news about the retraction will come out tomorrow after the markets close. Rather than a consolidation, I still believe there will be a stock split as there is likely more A's retracted than Prefs.  By retracting the Prefs, one would be surrendering a 5% market gain.  On the retraction, the Prefs would only get their $10 back, not the market price. My guess, perhaps 10

[myNEXTmillion]

Forgot to mention, the Prefs are now earning a minimum 7%  dividend rate effective December 1, encouraging them to hold and not retract. mNm

[twoofus]

They could rather do a consolidation of the Preferred shares rather than a split of the Class A shares.

[myNEXTmillion]

Consolidating the prefs will not happen... they are appropriately priced.  The fund is built around the preferred shares.  The Prefs are the anchor to the fund.  They have a fixed par value, and a fixed dividend rate currently 7%.  The dividend accumulates if the preferred share dividend is not fully paid.  Upon retraction, the Prefs would only get their $10 back. 

[NoShoesNoShirt]

I don't think quadravest would hurt the preferreds, that's the protected class. Any price to be paid will come from the nav, so the pain or gain is always absorbed by the commons. 

[Nakate]

the company has said nothing about anything so quit panicing

[Master1917]

Some comments seriuosly view large NAV reduction/split possibility. If its a reasonably possible outcome, then the current price is very high? Since the discount is comparable to other not-affected splits? How serious is the risk? Have you all sold your FFN to mitigate this risk?

[myNEXTmillion]

I'm comfortable with the current share price.  I'd buy more but I would have to sell other stocks to do so... fully invested. mNm

[Master1917]

I sold FFN at open, keeping a small position until dust settles. I will buy then. May use the priceeds to buy FTN today instead.