RE:RE:RE:RE:RE:WTI 90 day average $90+
odinburnz wrote:
A 6% divvy of .07 =$13.02 stock price!
That's a nice thought, but I feel that the price is going to be rather detached from a tight yield expectation for a while as even at the best of times previously the price action was wild. Your calling a possible temporary top as most of the time previously at 1.5 cents and even 3.5 cents this was trading upper 6-9% which is a wide range of action.
It's more likely this trades as a very high yeilder 7-10% for a while until all the company's debt reduction and plans play out over the next 2 years, and even after the initial dividend is announced its very likely to be increased 25-50% within a year. Maybe 2-3 years out it finds a somewhat equilibrium around the 6-7% on what ever it's payouts rest on.
Also corporate plans are one thing, the price action on oil has been rather wild itself and will influence the price drastically, I'm not banking on +100 oil long term as in the past it hasn't held that very long. 75-85 seems reasonable long term average expectation but even as an average it rarely trades in those numbers, usually well above or well below. I think we produce at a 35-40 cost so 50% average profit margin seems exciting.
I'd be very happy collecting .10/month with little to no debt and growth plans in the pipeline of either expansion of current assets or eating some more companies.