Regal Partners Ltd V.RPL

If management is silent, call them...

[Exomax]

That's what I did. I own 50,000+ shares of RPL and I want to know what's what with my investment. So I gave Alex Wylie a call and got the scoop on the strategic review, debt, dividend sustainability and the eventual move from the Venture to the TSX. Summary is this: RPL missed its debt target last year by $20M, since then they have paid down $13M of that 20. RPL is in the process of moving from the Venture to the primary exchange and would be listed there already had it not been for Board member illnesses requiring adding new Board members. As for the strategic review they are planning to release the results in the very near future and recognize that the longer we all wait for news the more it will erode investor confidence. He could not comment specifically on the sustainability of the dividend due to the strategic review other than to say that RPL is commited to its business model. RPL is also not for sale, Alex and Mike are both financially "all-in" (his words) in RPL and together represent the largest single shareholder (3%). With management having their own money in this you can be sure they will do what is necessary to create real value for us common shareholders. There has been no negative change to the asset base of RPL throughout the most recent correction in junior oils. Now, my own opinons here: I'm tired of amatuer investors carrying on about the yield being "unsustainable" at the current 20% territory, lets go back to high school math and talk about DEPENDENT and INDEPENDENT VARIABLES, what caused the change in yield? An increase in the dividend to the current "ridiculous levels", right? WRONG. The drop in share price has caused the yield to become inflated. If RPL didn't INCREASE the dividend to drive the yield to where it is WHY WOULD IT HAVE TO DECREASE it to bring it back down? SP would just drop to reflect the new dividend and we'd be right back where we started. That is NOT how you create value for your shareholders. When SP appreciates to pre-March levels the yield will return to an appropriate 8 or 9%, a product of INVESTOR CONFIDENCE, not by slashing dividend payments to create the illusion of confidence. Amatuers... Good luck to the rest of you!