Fred Atchity, the chairman of PREF
, remarked, "The Preferred Entertainment Board of Directors is recommending this transaction to our shareholders because we believe it is the best way to maximize shareholder value and liquidity.
similar investment objective and policy to PREF
, whilst giving holders
Any buy-backs made by PREF
will be made in accordance with the guidelines in
The white papers released by US PREF
illustrate how large-scale deployment of renewable electricity sources has produced dramatic cost reductions, while fostering innovation that has increased efficiency across entire supply chains.
DDM-valuation of Rostelecom prefs at 9% discount rate gives target price of $2.
Since our last report on sales companies was published (January 27, 2012), the companies have shown different performance: Rostov commons and prefs grew by 29%, Perm commons and prefs declined 11%, Krasnoyarsk commons gained 19% and Krasnoyarsk prefs fell by 1.
This means that owners of Rostelecom prefs will get no less than R4.
We revalued Rostelecom prefs using DDM with a 7% discount rateand the new payout ratio.
We confirm a HOLD recommendation for common shares and downgrade prefs to SELL.
Payout ratio is supposed at about 23%, implying 20% allocated to dividends on common shares and only 3% on preferred shares (for the latter 10% of net income will be allocated to 25% of share capital, while number of prefs actually corresponds to some 7% of share capital).
However, we believe that Rostelecom's prefs offer an attractive investment opportunity, as in addition to offering a healthy long-term dividend
We favor MTS, Rostelecom prefs, Mechel prefs, Surgutneftegas prefs, TNK BP Holding's commons and prefs, Bashneft's commons and prefs, Dorogobuzh prefs and Bank Saint-Petersburg convertible prefs as the best plays on the dividend theme.