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Trez Capital Mortgage Investment Corporation Class A Shares T.TZZ

"Trez Capital Mortgage Investment Corp is a non-bank commercial mortgage lender. The company provides residential and commercial short-term bridge and conventional real estate financing that includes construction and mezzanine mortgages. It also provides its investors with strategies to invest in a variety of mortgage investment funds and investment assets. The company also finances for commercial properties throughout Canada and the United States."


TSX:TZZ - Post by User

Comment by eInvestor99on Mar 16, 2015 6:09am
109 Views
Post# 23524285

RE:RE:RE:RE:RE:Obviuosly the company is buying

RE:RE:RE:RE:RE:Obviuosly the company is buyingI am not following how paying a dividend is better than buying shares for cancellation. The way I understand it, if a company has $1M net worth, and there are $1M shares then the shares are worth $1.00 each. If they use $250K to give everyone a dividend then you get a 25 cent dividend but your shares left over are only worth 75 cents, because the company just spent 1/4 of its net worth. So there is no net gain or loss. But on the other hand if the company uses 250K to buy 500K shares for cancellation from people who are willing to sell at 50 cents per share, then the company ends up with a net worth of 750K and only 500K in outstanding shares. That makes the remaining shares worth $1.50 a piece. So it seems to me it helps the shareholders more to purchase under valued shares for cancellation, than to just payout money as a dividend. Have I got this right?
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