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Wednesday, 12/09/2015 3:57:26 PM

Wednesday, December 09, 2015 3:57:26 PM

Post# of 1356
Why in the WORLD is RAS getting crushed so much!!??!?

Ok...i get that the dividend was cut in half...but their CAD (cash available for distribution) is still in line like it always has been(.22-.23). In 2011 or 2012 when the stock price was down around $3 or below the dividend was $.06 a share...they cut it back down to $.09 a share, still 50% higher then before with way betters numbers right now! And if you buy RAS now youre still getting a 12% yield...on possibly a very good/undervalued REIT in the years to come!! So was the major sell off mostly the ppl that jumped on the high div yield at $.18 a share, then sold when the div got cut?

RAS also stated they still have the .22-.23 a share CAD but the B.O.D decided to take $30 million of investment capital & put it into high yield loans, hopefully paying out higher dividends in the future!!!

I believe the dividend reduction says nothing about the strength of RAS. The $30 mil they are saving on divs is being invested into new securitizations. It generates immediate capital availability to support the lending platform while maintaining its capital flexibility. This company does multiple things and it includes (CRE/managment = lending, ownership, and lending arms).

Obivously this stock is volatile...and YES they borrowed alot of long term (like a mortgage). But then they use that money to make loans that pay even more, creating more cash flow! As long as they make enough to pay (like a mortgage), they get to own something that is worth way more than their bank account holds (just need cash flow). And from what I see they definatley have CASH FLOW! If their cash flow isnt there then there might be a problem, but i dont think there is.

Lastly/Naturally, the overall market trend is bound to be a significant factor. Stock is cheaper (proportion to its earnings over the past year) than most other stocks in this industry. Slightly declining rev hasnt seemed to hurt the compnays bottom line, with increasing earnings per share.

SOOOOOO......I feel like I have done alot of reasearch on this now and have been watching it since i bought it in 2011. As of right now I do not plan on selling it because of the reasons i stated above..can any one prove me wrong or right? Im just so weirded out by this price decline need sum1 elses opinion.

Just wondering if i should double down now on it....



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