I'm glad they're converting to a REIT because the stock is undervalued, and this way they'll be paying out at least 90% of pretax income to shareholders, as per the regulations for REITs. Clearly the insiders are frustrated with the current valuation.
Pretax income amounted to $0.62 per share in the last 2 quarters alone, so if the earnings stay up, the dividend payout will be very impressive. That in turn could drive the stock price higher. Of course a lot depends on what the real estate market does in the coming quarters. The stock is now around $3, so it would have meant over a 20% dividend for the 1st half of '05 if they had been a REIT over that period.
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