RE:RE:RE:RE:RE:RE:RE:RE:How deeply undervalued gcm is With your autorisation , completely desagree.
Div is necessary because ,
1) you handicap the shorts
2) you are in the serious companies camp ( disciplined )
So yes for a very small one .
A bigger one would be pure waste of money . Half the people will take their div and will go elsewhere to invest .
Now imagine what you could do with a 5 % div . : you can buyback 5 % of the company each year .
Assuming half shareholders are very long you reduce the free float by 10% . Make this 3 consecutives years , and you can imagine where the pos would go . You never never loose money . The company can always reissue the shares if necessary for "good " reason .and way higher .
No money lost , with the option for a very higher pos .
I am not in the head of serafino , but if, big if he repeats the repurchase for cancellation of 350 k each quarter , it makes 8 mil cad a year . , not so far of the 5 % div . ( and keep in mind the real free float disponible )
He sent very good signs the lasts 2 months , by ignitiating a small q div ,buying for himself as insider , and doing this buyback .
So for me a 5 % div for a growing miner is pure nonsense.