GREY:TRIAF - Post by User
Comment by
aagoldon Mar 15, 2011 11:43pm
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Post# 18291355
RE: RE: RE: RE: RE: Market misunderstands TOL
RE: RE: RE: RE: RE: Market misunderstands TOLYou make some interesting points. Hard to believe EQU needs to spend $60M just to keep production flat - I'll check into that. As far as the 2012 converts go, AAOI already included that dilution in his analysis.
1) Where did your "consensus" cashflow estimate for TOL come from? I know where to find consensus analyst estimates for large US-based companies - those are very easy to find. But I don't know where to find info like that on Canadian juniors.
2) You mentioned that companies don't have to issue new equity to increase production - they can "sit on their hands" and wait for markets to recover. Here's a question for you: do any of these companies ever *pay dividends*? Is that really such an awful thing? If valuations aren't good enough, why not just re-invest enough cashflow to keep production constant and pay out the rest in dividends? Is there something so wrong with a junior staying small and generating a constant stream of cash for its owners?