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Pat Stout

 
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  • Why Is Cliffs Using Its Precious Cash To Buy Back Shares? [View article]
    What valuation metric(s) will the "board" use to determine if the transfer of owners cash to departing owners makes sense? If the board is going to spend the money then why not return the cash to owners via dividend and let them decide if they want to increase their ownership stake in CLF?
    Aug 28 04:25 PM | Likes Like |Link to Comment
  • Cliffs Natural Resources Announces A Stock Buyback [View article]
    Since the share repurchase authorization announcement CLF is down roughly 6%. The market does not appear to view the boards move as bullish. Why should the market take a bullish view, the board isn't placing their money at risk. A recent Form 3 showed no shares held by a board member.
    Aug 28 04:10 PM | Likes Like |Link to Comment
  • Why I Don't Like Casablanca's Plan For Cliffs And What I Would Do Instead [View article]
    As I wrote the market reduced the market value by 6%, stock trading at $15.06 dn $0.97. Looks like the market does not think very highly of the boards decision to authorize a share repurchase program. fwiw, the $200 million equals $1.30 per the 153,182,488 shares outstanding at July 21, 2014.
    Aug 28 03:18 PM | Likes Like |Link to Comment
  • Why I Don't Like Casablanca's Plan For Cliffs And What I Would Do Instead [View article]
    Cliff's will need bondholder approval before they can repurchase shares. If bondholders are smart they will say no. And they should demand a sinking fund. Also noticed a board member Form 3 filing with no shares, as of August 6th.
    Aug 28 10:32 AM | Likes Like |Link to Comment
  • Cliffs Natural Resources Announces A Stock Buyback [View article]
    If the board had faith the stock was under-valued then they would use their own money to purchase shares not transfer owner monies to departing owners.

    As a CLF shareholder the share repurchase plan is very disappointing news. IMO, the funds could have been better used reducing debt which would reduce cost and allow more funds to drop to the bottom-line.
    Aug 25 07:55 PM | Likes Like |Link to Comment
  • Income Opportunity - Northern Trust Perpetual Preferred New Issue [View article]
    Newly issued cumulative preferred stock does not count towards Tier 1 capital. Source: http://1.usa.gov/XDXWRv

    Therefore it is unlikely to see financial institutions issue cumulative preferred stock.
    Aug 6 10:52 AM | Likes Like |Link to Comment
  • NQ Mobile Inc. Bid: Real Deal Or Red Herring? [View article]
    The non-binding bid by Bison Capital Holding might carry more weight if they had a 5% to 10% stake in NQ Mobile.

    NQ's board may have a hard time negotiating a higher bid, given the market reaction to the current $9.80 non-binding bid. Stock is currently trading below $7.00.
    Jul 31 11:58 AM | 1 Like Like |Link to Comment
  • J.C. Penney Stock Versus Bond Update [View article]
    sofos,

    A convertible bond has features of a bond and a stock in one instrument. Investors can create a custom convert by using a bond plus common stock, or options. It all depends upon the risk-reward profile desired by the investor.

    Hope this helps.
    Pat
    Jul 18 10:04 AM | Likes Like |Link to Comment
  • Institutional And Retail Cash On The Sidelines [View article]
    Buyandhold 2012,

    It is a market of stocks, the major indexes have gone up, but there have been many individual issues that have experienced multiple 10% or greater corrections.

    Agreed, cash can be a good thing and is required to take advantage of corrections.

    Pat
    Jul 15 02:26 PM | Likes Like |Link to Comment
  • Institutional And Retail Cash On The Sidelines [View article]
    Buyandhold 2012,

    The S&P 500 was 1,366 in March 2012, today it is 1,973. A 20% correction would take the S&P 500 to 1,578. That is 15% higher than the March 2012 level.

    There have been many issues that have had 20% or greater corrections.

    Pa
    Jul 15 01:51 PM | Likes Like |Link to Comment
  • Update: NQ Mobile's Audit In Major Jeopardy [View article]
    QTR -- interesting article.

    The unknown is when PwC requested to expand the scope of the audit. It was sometime after June 4th, but when? It would have been nice if the press release provided the date of the request. If it was recent, then the boards "consideration" might be more understandable as they have to meet for any decision to be made.
    Jul 3 12:16 PM | 2 Likes Like |Link to Comment
  • Stock Market Versus Net Corporate Dividends [View article]
    SDS,

    The Y axis is 100 for the index base date. Wanted to compare the rate of change in net corporate dividends with the DJIA. The X axis is the same in chart 1 & 2, as the only change was the base index date.

    Thanks for the link.

    Hope that helps.
    Apr 9 07:20 PM | Likes Like |Link to Comment
  • J.C. Penney's Bondholders May Have The Upper Hand [View article]
    JCP is selling 84 million shares to raise equity.

    http://1.usa.gov/161mvbX

    This may help support the bonds.
    Sep 27 09:39 PM | Likes Like |Link to Comment
  • J.C. Penney Bonds Change Of Control A Good Thing? [View article]
    JCP is selling 84 million shares of common stock. http://1.usa.gov/161mvbX

    This helps reduce leverage and support the bonds.
    Sep 27 09:38 PM | Likes Like |Link to Comment
  • J.C. Penney Is Dead Money, Get Out While You Can [View article]
    I think the wrong person is given credit for suggesting the need to raise more equity. From the link:

    <snip>
    He added that Penney’s needs to get more equity into the business “sooner rather than later,” and if the board is happy with Ullman, they should get behind him. Questrom said that he was really not interested in coming back to the board of directors, but would consider it if he was asked by the board, and he agreed with their ceo choice.
    </endsnip>

    Fwiw, JCP bonds have held up well give the turmoil in the stock.
    Sep 22 02:00 PM | Likes Like |Link to Comment
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