Yeah, the debt announcement is a little bit of a conflict but its just $150 million while their marketcap is over a billion. It may be just to facilitate transactions like where they are buying one to replace one they are selling but the sale may close after the buy.
One thing that bothers me is that 3 of their VPs made BIG money from brokerage commissions paid by FSP Investments in respect of the sale of preferred stock in real estate investment trusts syndicated in private placements ("Sponsored REITs").
A total of over $19.6 million between 3 of them for the years 2001, 2002, 2003 and 2004.
While Im not clear, it appears they paid these guys over 8% in commissions for selling shares at $100,000 a pop. Those shares were converted to common, I think.
It appears this exclusive club is now open to anyone with $17.25.
The prospectus said "On July 26, 2004, the special committees held a telephonic meeting in which the special committees and representatives of A.G. Edwards began reviewing potential valuations and analyses relating to the proposed acquisition of the target REITs by FSP Corp. The special committees then determined, after consultation with A.G. Edwards, to initially propose $16.67 as the per share value of the FSP common stock. This determination and the special committees' negotiations with FSP Corp. and subsequent determination to agree to a price of $17.70 were based upon a number of factors considered by the special committeesin consultation with A.G. Edwards,"
They used $17.70 as the figure when merging with 3 other smaller companies.
I dont know how much different the REIT market is now as compared to last year when AGE did their work.
If you have a few hours to kill...have a read and let me know what you think. Like I said in my original post, this appears to be WAY above my level of competence.
phx.corporate-ir.net
I tried to call investor relations but its just a voice mail. And they didnt respond to an email from yesterday.
A "critical" view of the insider buying suggests its is very small in relation to their stakes.
MACPHEE bought 10,500 but owns 382,806
CARTER bought 35,000 but owns 810,531
FOURNIER bought 1000 but owns 28,934
The director and CFO each took initial positions of 1000 and 5000 shares respectively. (CFO just joined the company in 04)
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On a side note, MACC might be worth looking at. They have a net asset value of $5.81 which is UP almost a buck from last quarter yet the stock has barely budged. Its at $2.65. |
