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cosmoray
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Posted - 2008.03.11 03:19:00 -
[1]
If the market is in really bad shape and you are not able to meet your IPO dividend goals, I would consider at least a partial liquidation.
Sell off the less profitable assets or corporation, and return the excess capital to shareholders via large dividends. Shareholders should be able to make better than 4 or 7% on their money.
This also makes sense if you do not have the time to manage such a large corporation/s.
You want to be left with:
1. A corporation of a size you have the time and are happy working with
2. A NAV that provides a good return to shareholders
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cosmoray
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Posted - 2008.03.11 16:53:00 -
[2]
Have to be careful not to hang on to long for the sake of it.
Better to take some money out, and make a better return on a smaller set of assets. Release some equity back to the shareholders.
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cosmoray
School of Applied Knowledge
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Posted - 2008.03.15 20:56:00 -
[3]
I am only going to talk about FIN-U.
As far as I understand it, FIN-U is a bond and has a policy in place for the running of the bond.
Quotes from the FIN-U bonds sales.
Interest will be paid out based on the actual returns achieved. This is expected to be 6-8% once the business gets going. FIN-U will give a guaranteed minimum return of 7.0% until the end of July 2008.
FIN-U will offer a conditional buyback policy if after July 2008 the returns drop to below 6.0%. The conditions are as follows:
i) If the interest falls below 6% after July 2008, a thread with buyback reservations will be opened within a week from the end of the month that the interest droped to below 6%.
ii) That thread will be open for buyback reservations for a period of 2 weeks after which no more reservations will be accepted.
iii) FIN-U will buy back bonds at 95% (950,000 Isk) each at a rate of no more than 5% of the total investment per month until all bonds reserved for buyback are bought back.
Doesn't really matter what the opinion is about the bonds. Erifit has GUARANTEED a 7% per month payment on the bonds until July 2008, at that point you can sell the bonds back to Erifit at 95%.
As far as I see it, Erifit has a duty to keep paying out on FIN-U bonds, and then has to offer buyback.
Discussion about FIN is a different matter, but his hands are tied for FIN-U!!
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cosmoray
School of Applied Knowledge
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Posted - 2008.03.17 19:55:00 -
[4]
Just realised that FIN-U hadn't paid the bond interest this month.
Is the bond in default?
Is the discussion a way of avoiding the "minimum 7% gauranteed payment until July 08"?
And before you ask, I have some FIN-U bonds (with two of my other ALTS).
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cosmoray
School of Applied Knowledge
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Posted - 2008.03.19 00:58:00 -
[5]
I really struggle to understand the attitude of investors.
After they have handed over their cash, they don't seem to care whats happens to it.
Its your money, you earnt it.
I am not saying that Erifit is doing anything wrong with this discussion but it is this attitude thats lets IPO managers get away with running poor business's when they should be wound up and the money returned to shareholders.
The fact is that FIN-U is a bond that has a GAURANTEED payout until July 08, now its not being paid no one cares.
If you don't care what happens to your investments, you only motivate scammers and poor managers to keep your money!!
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cosmoray
School of Applied Knowledge
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Posted - 2008.03.22 22:36:00 -
[6]
I agree why would you run a huge IPO if it wasn't to your benefit?
Then I say props on amassing a 600B personal fortune.
Don't worry I am sure that Erefit will soon enrich himself from FIN/FIN-U with his truncated payback plans.
It was all in the small print you see. Just none of us had a lawyer handy!
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