Email Subject: GMR Yield now at 19% even before acquisition
Yield will be 20-25%+ after the merger...my suggestion is to dollar cost average and ride out this wave of selling which must be someone selling who needs cash badly! Fidelity is a large holder and so is Allianz. I wonder if they are seeing massive redemptions from investors. It also is a small part of a few small index funds which can add to the downward spiral. At current prices ($334MM Market Cap), this thing is trading almost at book value ($334+ Debt of $655 on assets of $865MM (85% PP&E) is 1.1x book value)...and that assumes the 10 year old ships and steel on their books is at market value! The company reiterated its dividend policy of $2.00/share just in August, so I do not expect that to not happen. Dividend announcement should be mid-end of this month...hopefully the price is still this low so we can roll it into these firesale prices. There should be a 50 cent dividend announcement in the next few weeks. This thing is a steal at this price. No stock will stay at 20% yields for very long.
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