RE:RE:RE:RE:RE:Drip - response from IRjammo71 wrote: BlueCollar51 wrote:
In 2016 Q1 financials the value of the DRIP shares issued was $1.99m. There was $8.521m cash dividends paid. That implies a DRIP participation of 18.9%. According to my calculations based on the publicly available information SNCF received abt. 72% of the DRIP shares issued in Q1.
They have told you that the current DRIP participation is 5%. What is the reason for the substantial reduction? I suspect that SNCF has finally withdrawn their shares from the DRIP program.
Maybe I'm missing something but wouldn't SNCF unloading 4 million shares in Q1 explain the reduction in the DRIP? This presumes that whoever bought the shares didn't sign up for the DRIP but it seems like a pretty reasonable explanation.
I have posted the reasons that make me suspect that SNCF has withdrawn their shares from the DRIP.
Regardless of the cause the substantial reduction in DRIP participation to the current 5% as told to d_trump by the IR dept. will have consequences. Although the “Dilution by DRIP” will be reduced there will be a corresponding increase in the CASH dividend obligation going forward.
The result will be an increased POR. At this point it is not possible to accurately estimate the damage done to the POR and if it will be manageable or not.
The Student Transportation Concept “Kids have to go to School regardless of the economy” is very good.
They are very good School Buss operators and do a good job for their customers.
They have done a very good job growing the company. (For themselves perhaps?)
Unfortunately, the unstainable “Income Trust” strategy of a very high POR and growing the company by dilution has prevented the shareholders from participating in the growth.
The “SafeStop” app. has the potential to generate top line revenue. What’s not known is if it’s a low margin value added service or will contribute meaningfully to the bottom line.
As Always; Do Your Own Due Diligence; It’s Your Money !! PS; ffhwatcher
Have a look in the Financials “Consolidated Statements of Cash Flows” under “Financing activities”
“Redemption of Class B Series Two and Three common shares” $2.014m in 2015 “Redemption of Class B Series Two and Three common shares” $168k in Q1 2016 According to my calculations (not guaranteed to be correct) SNCF received abt. 80% of the DRIP shares issued in fiscal 2015, abt. 72% in Q1 2016.