REIT CorEnergy Infrastructure Trust has suspended the dividend today on the 7.375% perpetual preferred (CORR-A).
The share price has been butchered–from $17.xx down to $8.08
J mentioned this in the Readers Alerts section early today.
CorEnergy Infrastructure Suspends Preferred Dividend
Does CORR lose its REIT status if it stops paying dividends????
Gumfighter–no–it remains a REIT.
They were an interesting idea for a REIT, and I made some money trading them about 7(?) years ago, but as I researched them, I decided I wouldn’t own them long term.
Over the last few years management made some dumb decisions and they imploded. Too bad for the shareholders.
Private,
Same here. Years ago Tim had Tortoise CEF’s on one of his master lists. Maybe at the time they had preferred outstanding. The same company managing those CEF’s started CORR which was supposed to be a company with energy holdings, not just oil related. At the time they owned a long distance electric transmission line. Made promises of one to two acquisitions a year. Then they sold the transmission line I think to El Paso and bought a off shore oil gathering pipeline. After that they kept going deeper into oil assets. I had high hopes when they bought the oil tank storage farm outside Portland but they turned around and sold it. I lost interest after that.
The common stock cost less than a McChicken sandwich per share and the preferred was trading at almost 20.00 a share? How could be people be this blind?
Mutual fund idea.
Short any preferred where the preferred cost at least 5X the price of the common..
Would you suggest shorting all the SACH preferred issues then ? Reason I ask is that is the case with SACH stock and I do own SCCB and SCCC, they are my lowest quality holding, been thinking of selling for a pretty good gain, but they pay a high dividend rate, with one maturing in 2024 and the other in 2025, really on the fence about these two.
Bill, the delineation between CORR’s suspension of the dividend and the SACH issues you have referenced (SCCB and SCCC) is these are bonds (debt) and the CORR-A is an equity (preferred). SACH would have to file for bankruptcy to stop paying these bonds. I am NOT RECOMMENDING you do anything and encourage you to do your own deep due diligence my friend, Azure
Azureblue,
Thank you for bringing up that important point. As you point out, it would be bankruptcy if dividends were not paid, although not totally out of the question, not likely. I think the main reason I have held on to these issues is because of the huge out sized dividend SACH pays on the common, around 13%. There is plenty of common fat there to insulate the BB issues I hold. Their financials look pretty good so, everything considered, I think I will just carry on with these two, but not add. Thank you for the reply.
Justin:
Check out Ammo, Inc. (POWW) trading for $2.26/share and POWWP trading for $25.88.
POWW down 50% over the last year. My guess is your theory on this one is eventually going to be proven spectacularly correct.
https://seekingalpha.com/news/3908143-ammo-stock-plummets-26-as-outlook-cut-proxy-contest-linked-expenses-to-continue
well, they report their results next week after the market close on Tuesday, so if they are planning on suspending the dividend, expect the announcement next week, likely either Monday or on their earnings call….