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I am short GNI and the stock stopped trading. My broker wants me to cover the stock so I need to find someone who is long. The stock is worthless because the trust's final payment is based on whoever owned the shares on April 6th, 2015. However, to cover this short I will be willing to pay $0.50 a share up to 1100 shares. My online aim or yahoo name is patricklirish or you can email by the same name @gmail.com. Hopefully I can get this stock off my screen and someone can take my money :D
Double bottom as well. Bullish as it gets.
Great Dividend History
Looking good for a turn around, oil prices are only going to help
NOW is the buy time all the way to x day
Read my next post...seeking alpha
Great weekly + daily charting. Expecting a very nice turn around here.
I'm in
There has to be some material event that tanked this....if it was just a one time historical or hysterical event there could be a great turnaround brewing
As long as the pps doesn't kerchunk downward, each quarterly dividend, and the divi amount also, with respect to the downward pps......hmmmm......Still a tempting one though.....
Not sure, but it certainly has my interest here...
Only 7 more quarters left until April 2015 end
The ex dividend date just passed for the 2013 Q3 dividend, so there are only 7 more quarters left before the April 2015 end with the property reverting to Glacier Park Company, a wholly owned subsidiary of ConocoPhillips Company .
I expect the total remaining payouts to be around $26.56 with the breakdown as follows:
1: Seven quarterly payouts of around $2.50 each for a total of $17.50 in dividends.
2: A final distribution at the winding down of the trust of around $8.56.
Total payouts between now and April 2015 = $17.50 + $8.56 for a total expected payouts of $26.06
Louis J. Desy Jr.
LouisDesyjr@gmail.com
High Dividend
Are you aware that the trust is going to end April 2015?
There will be several more quarterly dividends, a final payout of the equity (around $8.50 per share) and then nothing after April 2015.
Louis J. Desy Jr.
LouisDesyjr@gmail.com
After final distribution, stock will have no value
Here is what is going to happen:
1: For the next 8 quarters, the company will pay out most of its income as a dividend, probably around $2.50 per share. This will get you a total of around $20 per share in total dividends.
2: After April 2015, there will be a final distribution of the assets, after all liabilities are paid off. That final distribution will probably be in the range of $8 to $10 per share, depending on final expenses.
3: After the final distribution is made, the property reverts to Glacier Park Company, a wholly owned subsidiary of ConocoPhillips Company. The trust does not get any money for that since the assets are reverting due to the trust coming to an end, it is not a sale for value. (The trust ends 20 years after the last survivor of the trust died. That person died in 1995 so 20 years is 2015.)
4: The stock will stop trading, and the stock will be delisted. The 'company' (It is really a trust) will be closed and it will be all over.
At best, it looks like anyone buying the stock today at $73/share will only get about $30 in payments before the stock stops trading in 2015 and the trust closed. The only reason that the stock seems to trade as high as it does is that people do not seem to understand that there is a time limit for the company to be open; they look at the dividend yield or P/E and think it is a good buy. On yahoo there was a message from someone who bought it, then discovered the 2015 limit and sold it at a profit. He was lucky.
The Street (dot) com is not helping matters any because they keep putting alerts out on it as being a good dividend play. It looks like they use some kind of automated stock screener, so the program does not seem to understand that the dividends will only last 8 quarters and then have a final payout. They should fix this since someone could get tricked into paying up for this stock as time goes on since the price should drift down, the yield go up and GNI would look better since the yield would be increasing.
I am short the stock, with the expectation that the stock should trade no higher than $30 today and probably lower since the $30 would need to be discounted for the time value of money to today.
Normally I would not comment so much on a stock that I had shorted, but there is no way getting around the fact that someone is going to lose money on this stock now. Someone is going to be holding or trading the stock as it trades from the current $73 to $30 (or less as the dividends are paid out), until the final distribution in 2015. If the stock price does not move between now and the end in 2015, people will have held onto something that traded at $73 and got only for $30 in return before the 2015 end.
If the stock price would adjust as it should, and then drifted down in step with the dividend payouts, then at least anyone mistakenly buying into the stock would at least have a chance to break even as the stock declines matched the payouts.
I think the worst thing that could happen is for the stock to stay at $73 as April 2015 approaches.
Anyone buying today is probably on track to lose $43 per share for a loss of 58%. If the price does not start dropping to at least match the payouts, someone buying in 2015, just before the final distribution, could lose as much as $65 per share for a loss of 89%.
Louis J. Desy Jr.
LouisDesyjr@gmail.com
My Private Selection...This Company is Great To Shareholders.!
So what is this stock? Why did the pps go to $60 from $120 and what's up with 2015 and when in 2015? Should I buy till the end of this year then dump at last quarter of 2014? Or stay far away from this?
Looking good for anyone who bought in the 60s.
Down down down this POS goes!
What have you found out during this past year? It seems to me the trust would want to reward the shareholders who continue to support the shareprice into the final days.
Yea, it seems to be a bet on ore prices because if one holds all the way to 2015 and brings in X dollars from all of the dividends from now until that point, but then in the last year or years of the trust the price per share drops then fair value for the shares is lower, but if somehow the trust will keep price per share up all the way to the end (on top of the high div) perhaps by way of high ore prices then fair value could shoot way up compared to where it is now.
I was trying to figure out fair value in this one but its a moving target because of future ore prices and not yet sure what happens to the price per share as the trust unwinds near the end. Ill dig more into the filings and see what I can find and post here.
I have no idea. But somehow I thing it will be a good deal
It did rebound nicely, the dividend seems to be the main driver in this stock. In 2015 when the final disbursement (liquidation from closing the trust) occurs and final dividend given to shareholders, will the price per share drop to zero OR will the company execute a buyout? Will the trust simply allow the share value to drop to zero and give investors the final trust payout or will the company buyout the shares, THEN shareholders on record will get the final dividend (from whatever is left on the balance sheet from the trust)?
thx
It was consistent with a downturn in the mining market sector...MSB went down, Silver etc...It was a nice correction. Look how well it rebounded since...awesome...
Do you know what caused that huge selloff?? Maybe, was it just short term holders piling in up until the dividend and then once they got the dividend they thought there was no reason to hold on to it? Seems like a massive move for really no reason.. weird...
thx
still climbing...not sure if it will collapse like it did last time
Still running back to its high
Yes it is...It held up nice after the ex div date came and went. I think market pressure is on it now...Needs to crackk 90...
GNI - Just may be poised to crack the 90s...cracked the 200 DMA...
GNI - definitely don't like the long wick on the white candle but still got room to run into the powerzone but I expect churn tomorrow...hope I am being to pessimistic...
GNI - May inch back up...held for the Divy...
GNI - what do you know it finish over $90..
GNI - MFI still in powerzone....divy at the end of the rainbow
GNI - a breather today...
Yeah...looking a a few mining ops. Seems there may be something to bottom feeding these...
ain't that the truth, lol!
This one is fun to watch though, moves on air with such a low OS, and that cash divi just sweetens it up~
Seems that divy is the key....wish I bought more...Which is always the case when they go up..LOL
it just did, lol~
looked like a standoff on L2 earlier.
A break and close above 100 and it it goes to 120 within a few days imo~
Does this break over 90 today? That is the question...
GNI - green today again...
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Company Contact
Headquarters: W-1290 First Nat'l. Bank Bldg.
332 Minnesota Street
Saint Paul, MN 55101
Web Address:
http://www.gniop.com/
Great Northern Iron Ore Properties (GNIOP) is a conventional non-voting trust that owns interests in fee, both mineral and non-mineral lands, on the Mesabi Iron Range in northeastern Minnesota. The Company primarily derives income from royalties on iron ore minerals (taconite) mined by its lessees from these properties and minimum royalties. GNIOP is involved solely with the leasing and care of these properties. Although the Company owns in excess of 67,000 acres in varied fee (surface and/or mineral) and ownership percentage interests in northeastern Minnesota, its mineral interests on the Mesabi Iron Formation represents 12,033 acres, including approximately 7,443 acres that are wholly owned; 1,080 acres, in which the Company is a tenant in common with a 91% interest; 3,350 acres in tenancy in common with a 50% interest, and 160 acres in tenancy in common with other fractional interests. Of the mineral interest total, 9,215 acres are under lease and 2,818 acres are unleased.
Distribution Information:
http://www.gniop.com/pdf/Qtrly_Distribution/2008/12-12-08_Dist_Release.pdf
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