Eagle Energy Inc T.EGL.UN

RE:RE:RE:Dividend

[JReynolds]

The issue we have to face now is which is worse, IN THE EYES on the shareholders. There will be shareholders who will sell when the divvy is reduced. These shareholders will be the ones who have invested since the early days, and whose average prices are from $5.00 and above. The yield for these shareholders cannot be said to be at 20% now,... and if the divvy is cut, AGAIN, IN-HALF, yield would drop to 3% and below. How would these investors re-act ? The investors who would actually gain would be the ones who have invested since the price dropped to $2.50 and below. And these are the investors who stand to gain the most from the very high yield. The only way for the early investors, also known as the loyal and long-time supporters of EGL, to be motivated to hold-on to their units is to continue reaping a reasonable yield, and to attain the confidence to buy-up more units in order to average down their cost price. The question becomes which group of investors would the Board favours. The earlier loyal group, or the ones who joined the bandwagon when the drop started to take place.