TRANSEASTERN POWER TRUST 7.5 PCT DEBS V.TEP.DB

Dividend 9.95%

[tawakeltu]

Why the share is trading at this low price, when the dividend is almost at 10%. Any comment wellcome.

[Hitting10X]

Just noticed this too. From some initial DD: ~Transeastern just acquired Mediterranean Resources (MNR),  a cash shell, using its shares.  Transeastern netted $3.5m of cash thru the acquisition and substantially improved their balance sheet as a result.     However, MNR was delisted from the tsx-v for a year, and was trading at 7c per share despite having about 25c per share

[Parenthetical]

Its no wonder MNR shareholders like myself want out of Transeastern. It has a swathe of lawsuits against it from the former Corporate Secretary, the CEO, the directors, major shareholders, the carpetbaggers from Waratah. If it thought it was getting "free money" with the MedRes deal, it should think again. The management at this company have buried the head in the sand and are avoiding

[Parenthetical]

Well may you ask. A better question is how this company can pay any dividends when it has been losing money hand over fist. Dividends are supposed to be paid out of profits not out of reserves. In the nine months ending Sept 30th the company lost $5.8mn and in the same period of FY2014 lost $3.8mn. There is no light at the end of the tunnel and I suspect the bogus yield calculations flying around

[biloshi]

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