Q: Stock has dropped significantly since your most recent comment in February.
Do you have any updated insight ?
Thanks
Jerry
Do you have any updated insight ?
Thanks
Jerry
5i Research Answer:
RFA has declared its first dividend, 22c for a two-month period. The quarterly rate will be 33c; This week the company noted it had $340M in assets up for sael. The merger is complete and the stock is down about $10 since listing. It did bounce 11% yesterday. Its small size (sub $1B), 'newness', and lack of analyst coverage make it a hard sell to investors. In addition, of course, the timing of its listing was hardly ideal, close to the start of the Iran War. It is expected to report near month end. We would like to give this one some time to season and show it can execute. It is more interesting at the lower price and the dividend is attractive, but we think buyers have time here.