RB has been pouring through the photo albums and finally found a picture of the Headknocker at 3 months that showed RB in its heyday. It has been downhill since that time for RB.
S L Green, a company in which I own both common and preferred stock, announced that it will be selling up to 19.55 million shares at $20.75. Yahoo! Finance SLG further announced that it was cutting its common dividend again from 37.5 cents to 10 cents. Yahoo! FinanceThis is the second cut for the common holders, so the common dividend has now gone from 78.5 cents to 10 cents. This is great for the preferred shareholder. Yes, dilute those common shareholders by raising more cash by selling common stock and cutting their dividend. Those kind of measures make it more likely that the preferred dividend will not be deferred. It of course does not eliminate that possibility but simply diminishes that chance. The preferred shareholders still have their security blanket, in that a cash dividend is being paid to the common shareholders, and it does not matter how much, the lower the better from the preferred shareholder perspective in my opinion. But, I also hold some common shares. I view the announcement of a dividend cut and the share offering to be a short term negative. But, if this helps SLG survive the downturn in NYC commercial real estate more or less intact, then it is okay with me.
Some of my prior posts on this company:
My major concern as a common stockholder is keeping the company intact for the next upturn in NYC commercial real estate, which will happen. I know that it is not good today, but I am not buying the common based on the way things look today. I am just using what is happening now to invest for the future.
Stifel Nicholas did upgrade SLG to hold from sell today. Quotes for SLG - Yahoo! Finance
The common price rose over 6% today. I would prefer an analyst becoming less pessimistic at around $8 as opposed to $23.40 which is about where it closed today. SLG closed at $8.69 on 3/6/09.
One thing to keep in mind is that I am from Tennessee and SLG is a big operator in NYC. So the folks who work for the brokers have to know more than me. If someone put me in Manhattan somewhere, I would not have a clue where I was. I would just ask for directions to Yankee Stadium.
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