TSX:CHE.DB.E - Post by User
Comment by
GregC24on Aug 17, 2023 11:06am
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Post# 35592891
RE:RE:RE:How To Lose $$ In One Easy Lesson
RE:RE:RE:How To Lose $$ In One Easy Lessonraybay_98 wrote: From Yahoo BB,
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Allow me to simplify this. If Chemtrade fails to meet their obligation of distributing the committed percentages of their earnings to the unit holders, not only will the unit price remain stagnant, but they may also face an investigation by the SEC and a potential class-action lawsuit from investors
The first thing that would happen is their status as a Trust would be rescinded. Then they'd be sued. Not sure how their exchange status would be affected. Nonetheless, you are totally right about their requirement to distribute; taxes, debt, Capex, etc, not withstanding, they have to distribute their profits to shareholders...thus why it is a distribution and not a dividend. I've always wondered why it is a fixed value, for that reason...under some circumstances it should pay out higher. Perhaps it's a payout ratio thing? I don't know.
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As you brought up the topic could you please enlighten the board as to what that minimum obligation is for Chemtrade.