EXPM:EGRGF - Post by User
Comment by
mikeymegabuckson Nov 06, 2014 10:56am
289 Views
Post# 23101886
RE:Expect good 3rd quarter results
RE:Expect good 3rd quarter results We need to distinguish between cash which is as the result of sales of oil and cash from the sale of assets. It never is appropriate to take asset sale cash and start paying it out to keep the current dividend going. A 30% + dividend yield is one of the biggest red flags one can have as an investor. It is incredible to believe that the payout ratio is only 100% given that so much cash flow has been sold. I think it must be way north of this figure. I have been a solid fan of Eagle since day 1, but the recent actions of the Board have solely tested my belief in this company being able to turn this around. The sale of good assets brings to mind the staement that " a bird in the hand is worth two in the bush" . The board is searching desperately in the bush right now.