After announcing stellar earnings and hiring Morgan Stanley to explore options the shares have moved very nicely higher by near $2/share in the last 10 days.
It is our opinion (and just our opinion) that these shares which are now at $24.80 could move all the way to $26 in the month ahead. This is based almost entirely off where the shares were trading prior to the announcement of a follow on offering of 2 million preferred shares. Shares had traded above $27 prior to the announcement and while we don’t think the price will get back to $27 we do see more upside from the current levels.
We have more than enough of this issue in portfolios and thus won’t buy more even with the potential upside.