Divs Secure for C & D Prefs I'll say this again, C&D are cumulative Divs, so you get them sooner or later unless the Co goes BK. Obviously if they suspend the C&D Divs, which only represent $XXM a quarter people aren't going to want to buy them without the immediate the income. Furthermore, it sends a pretty gloomy message if you suspend cumulative divs I would guess. Any historians out there, has this ever hapened on any cumulative pref Divs in Canada?,
The direction of business model seems pretty clear:
- They have to achieve organic growth in digital or buy assets cheaply and build them up rather than overpaying for assets like they likely have done with RFD and Les PAC (and Trader). The Canadian advertising market can only support so many ads and online properties can only support so many subs in a competitive environment. If they have scale, then it becomes a magnet for both subs and advertisers, which I hope they do/will
- There are many online media properties that are clear success stories thanks to affiliate marketing and ads. Its incredibly lucrative and low cost if you are able to get enough of an audience.