Just a heads up to those participating in the DRP. Magellan's account manager has confirmed that shares issued through the DRP will be priced at the NAV minus 5% - even where the SP is at a larger discount to NAV. Currently the SP discount to NAV is about 12% and doesn't look like closing anytime soon. If it stays at this level when the next dividend is paid out, it means DRP participants will be issued shares at about a 7% premium to the SP. I am assuming this will be the same for MGF. So tip here is to cease participation in the DRP at this time.
I've seen DRPs for other stocks have a default of issuing shares at the SP in these circumstances, so I think this approach by Magellan is pretty lousy.
MHH Price at posting:
$1.45 Sentiment: Hold Disclosure: Held
