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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (29328)	12/19/2007 1:20:04 PM
From: Jurgis Bekepuris	Respond to of 78753

Thanks for the explanation and article. I understand the dilemma: they pay out 80%+ as dividends, so they need secondaries to grow. But then we can't really call it growth, since they essentially are creating a new part of the company through the offering that then potentially benefits the old part of the company shareholders too, but only partially. I have to think how to account for that, since IMHO straightforward metrics all get distorted by this business scheme. I.e. ROE is not really applicable. Yield is not really affected, P/E maybe not either. Maybe, like someone said, you want to buy them at NAV or below... Not sure, have to think more. :)