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Heisenberg Principle

 
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  • Why REIT Dividends Are Not A Mirage [View article]
    bing bing bing We have a winner.

    disallusioned is the first one who actually gets it. A true light in a DENSE thick fog.

    Follow mark for you. And I apologize to others for not making my article more clear I guess. I honestly tried to simplify it as best I could. :)
    Mar 6 05:01 PM | Likes Like |Link to Comment
  • Why REIT Dividends Are Not A Mirage [View article]
    David,

    According to many here, equity raises are not dilution because we are to automatically and unequivocally assume that management is perfect and exceptionally high returns will come from any money thrown on them. It's surreal.
    Mar 6 04:59 PM | Likes Like |Link to Comment
  • Why REIT Dividends Are Not A Mirage [View article]
    "Dave, I've subscribed to your newsletter last spring (after purchasing your book), but haven't receved a single issue since, why?"

    The little guy is only invited to the party when he's the main course.

    Be careful out there.
    Mar 6 04:45 PM | Likes Like |Link to Comment
  • Why REIT Dividends Are Not A Mirage [View article]
    Correct. I never said nor implied that it was a bad thing.
    Mar 6 04:43 PM | Likes Like |Link to Comment
  • Why REIT Dividends Are Not A Mirage [View article]
    I didn't say there was a loss of value with the dilution. In fact, the intention of the dilution is a gain in value over time which is the point of doing it.

    We can't say for sure that the dilution with ARCP will result in value gained. That's the intention certainly by ARCP management but there are no sure things, hence ARCP warns in black bold letters that it IS dilution.
    Mar 6 04:42 PM | Likes Like |Link to Comment
  • Why REIT Dividends Are Not A Mirage [View article]
    Regular non-diluting dividend payers are real. Hence their yields are lower.
    Mar 6 11:30 AM | Likes Like |Link to Comment
  • Why REIT Dividends Are Not A Mirage [View article]
    More light in the fog. Excellent.
    Mar 6 11:29 AM | Likes Like |Link to Comment
  • Why REIT Dividends Are Not A Mirage [View article]
    A brighht light n a dense fog. Kudos, Bruce.
    Mar 6 11:28 AM | Likes Like |Link to Comment
  • Why REIT Dividends Are Not A Mirage [View article]
    There's an alpha pro article calling the merger accretive, in direct contradiction to ARCP's own 10K filed on Feb 28.

    I'm just correcting the epidemic misinformation that causes people to see a mirage and think it's water. It's not water: it's dilution.

    Do a search for dilutive in ARCP's 10K then search for accretive. ARCP calls it dilution. accretive is a word only used by SA members. Go figure, huh?
    Mar 6 10:59 AM | Likes Like |Link to Comment
  • Why REIT Dividends Are Not A Mirage [View article]
    More from ARCP 10K:

    "Funding dividends from the sale of additional securities could dilute your interest in us if we sell shares of our common stock or securities convertible or exercisable into shares of our common stock to third party investors."

    Sound familiar? 130+ page 10K and the only place you can find the word "accretive" is in the comments section of SA. Dilutive, however, is splashed throughout dozens of times. Oh the humanity.
    Mar 6 10:44 AM | Likes Like |Link to Comment
  • Why REIT Dividends Are Not A Mirage [View article]
    From ARCP 10K

    Your ownership position will be diluted by the Merger of us and ARCT III.

    The Merger of us and ARCT III will dilute the ownership position of our stockholders. Following the issuance of shares of our common stock to ARCT III stockholders pursuant to the Merger Agreement, assuming 70% of the Merger consideration is paid in the form of shares of our common stock, our stockholders and the former ARCT III stockholders are expected to hold approximately 9% and 91%, respectively, of the combined company's common stock outstanding immediately after the Merger, based on the number of shares of common stock of each of us and ARCT III currently outstanding and various assumptions regarding share issuances by each of us and ARCT III prior to the effective time of the Merger (provided, however, such dilution could be greater than described herein depending on the number of shares of ARCT III common stock with respect to which ARCT III stockholders make stock elections). Consequently, our stockholders, as a general matter, will have less influence over our management and policies after the Merger than they exercise over our management and policies immediately prior to the Merger.
    Mar 6 10:42 AM | Likes Like |Link to Comment
  • Apple's Secret Weapon Will Yield All-Time Highs [View article]
    iWatch sounds very much like we've read and seen in sci-fi stories for decades. This could be a game changer for sure!

    Speakerphone on the watch for driving will be fantastic. And GPS.
    Mar 6 10:38 AM | 3 Likes Like |Link to Comment
  • REITs: Why The Dividends Are A Mirage [View article]
    By strict definition of dilution, an increase in the share count with no corresponding increase in earnings IS dilution. Yes, with a REIT you HOPE and EXPECT management to leverage the cash raised from the financing into NEW investments, but you cannot say with 100% certainty that both they will be successful and the environment will cooperate. There are certainly times in history where the environment made it near impossible. Only when shares are used to purchase an acquisition that is already profitable is it potentiall accretive. Shares issued for cash, regardless of the market price or book value, is called dilution. It may be GOOD dilution, and favorable dilution (if that's your OPINION), but it's still DILUTION. This is a fact.

    Basic Finance 101.
    Mar 6 06:56 AM | Likes Like |Link to Comment
  • REITs: Why The Dividends Are A Mirage [View article]
    I don't disagree with any of that except the claim that I'm ignoring net income for the over-simplicity of the example within a very short timeframe (days or weeks). You are correct that net income generated will potentially help fund further increases in future investment income. Of course, if a REIT is really could at getting 7 to 8 times leverage from dilution, then if you really do the math, the effect of paying the dividend truly does reduce future earnings a lot. Management must not be very confident in that leverage sustaining or it would be in management's best interest to forgo the REIT status, pay the tax, and use what's left to get super leverage. Even at a 40% tax, the 60 cents on the dollar could be turned into $3.48 after tax. But I digress. ARCP, what has become the hot topic lately, warns of dilution in its own 10K filed last week.

    I'm shocked a seekingalpha article got pro status for calling the merger accretive, in direction contradiction to ARCP's 10K.
    Mar 6 01:31 AM | Likes Like |Link to Comment
  • Is Amarin The Next Celsion? 10 Eerie Similarities [View instapost]
    That is an excellent, well-balanced and logical comment. I cannot say I disagree with any of it. Good luck to you!
    Mar 6 01:01 AM | Likes Like |Link to Comment
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