TSX:IBG.DB.E - Post by User
Comment by
quest13on Aug 17, 2012 10:00am
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Post# 20228578
RE: Analysts having second thoughts
RE: Analysts having second thoughts I believe that it is important to keep in mind that this year $40 million was raised by issue of new shares at $15.00 which was partially for the purpose of reducing debt. The effect of this can be seen in the post by "tesh" #31380929
I believe that the debt repaid probably had a lesser cost than the payout to the new shares and that it was done to make the market and lenders more comfortable with the company's level of debt; even though it raised the percentage of income which is being paid out.
blazesboylan posted in #31392534 that Canaccord Genuity cut to sell from hold and placed a new target of $8.00 from $11.00. Others range from sector perform to Sector outperform and range around $12.00 to $14.00 as targets.
Does anyone have access to the Canaccord report and if so could they summarize the thinking behind Canaccord's view. My view tends toward the company's results improving and over the near future reducing the percentage of earnings paid while maintaining the payout itself at current levels.