RE:RE:RE:RE:RE:Disappointing dividend announcementLuckyguy777 wrote
I don't believe they said they would increase it. I thought it was along the lines of "review it". Share buybacks are still a form of shareholder returns and at these prices, probably the best return for all of current long term shareholders. That is who they should be looking out for.
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In the just released second quarter report they stated.
"We anticipate that our net debt will decrease to under $50 million in the third quarter at which time we will revisit our overall shareholder return strategy with an increase to the dividend rate. With the implementation of the NCIB we expect to balance dividend increases with the opportunities to utilize the NCIB."
It appears that they do want to raise the dividend rate, buyback shares, increase capex by $30 million and pay off the $62 million of debt all by the end of the year.
At $90 oil they will not have enough money to do all that and something will have to give. IF they keep the current dividend and increase capex by $30 million in the second half they should have debt down to around $10 million by the end of the year. If they did that next year at $90 oil CJ could pay a 7 cent monthly dividend and still keep aprox. $ 110 millon per year for share buybacks, asset purchase or just to pile in the bank.
Whichever way they do it CJ is in very good shape. They have just started paying a very nice dividend and whether they increase it next month or in five months the company is in much better financial shape than its has ever been and is getting stronger everyday and that will really start to show and benefit shareholders in the coming months and years.
Good luck to all.