RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:They think we are stupid...A lot of numbers tossed around and I will leave that to the more knowledgeable. I think we are in a difficult period for new deals so this may not be the most glamourous one we were hoping for.
The one thing I really do like is US exposure. Let's not forget Canada is 1/10th the size of the US and so growth here is much more limited that there. This could be a dog investment or a glorious money machine. Needs some time to judge. Having said that I will only buy new shares below the broker price and if it doesn't go lower I will be happy to keep what I have currently in the $2.50's.
babedinkleman wrote: And that sir....is why you are named fannyman and I'm named dinkleman. Thanks for correcting my brainfart ! Don't get me wrong I'm still not impressed with the dilution and resulting half cent dividend bump.....but at least that clears up why it's happening and that the total payout is actually increasing a little over $4 million rather than jjust 700k.
I'm still weary about buying janitorial services on the back of covid......but that puts my mind somewhat more at ease. It really puts the model in perspective though to consider if they were to double the company in size based on dilution and debt....that being the required route at this point.....we may only be in store for a few cents worth of dividend increases. Deal announcements may always be met with a share price hit if they need to dilute at such a discount to market to get it done. Anyway thanks again fannyman.
Fannyman2883 wrote: They're paying out A LOT more than $700K, considering how many new shares they offered. Maybe you're calculating the half cent increase to all share holders only? That's a fraction of the total new distributions, which would mostly be for new share holders with the dilution.
14.2 million new shares * 0.24 = around $3.5 million just for that new expense. Add in the others I described, and it makes sense that the new money is mostly accounted for going forward.
babedinkleman wrote: Or put more simply......they just spent $80 million......equivalent to almost 25% of the market cap with the current share count.....diluted....took on debt.....and in turn are paying out only $700k more in dividends a year. I'll say again......huh? Actually I'll upgrade that to WTF?