RE: Joey re Ex divvy Actually, I've been waiting and watching this stock, waiting for the ex-divvy date to pass, as I wanted to see what impact it has on the stock. I still have some cash from the takeover bid on ETR that I need to reallocate. I was going to wait 'til a bit later, but the sell in May phenomenon now seems to start in April, so, what to do...
Now, logically, I'd have to agree with the poster who said that a 2¢ dividend on a monthly basis shouldn't impact the stockprice, at least not in the way that an ex-divvy date on a quarterly or half-year dividend might affect a stock; but then, this stock is behaving anything but logically. Instead, it has given away to emotion and speculation.
I thought RPL was basing earlier this week, and I was getting ready to buy, but like I said, I wanted to wait until the ex-divvy date had passed. Based on today's action, I'm glad I waited... but I will likely buy in sooner or later, as there is value here... the only question is just at what point will RPL finally put in a bottom?
As for the shorters who are blathering on about a dividend cut and its possible effect on the stockprice, they should perhaps look at some other companies which have recently cut their dividends after much pressure from the market... I'm thinking specifically of Telefonica (TEF-N). Check out the chart for yourselves. After a long downward spiral, the dividend cut came, and now the technicals seem to be slowly improving on this stock, to the point where I actually took a small position earlier this week (even though it's from Spain).
The only thing I possibly can guarantee is that RPL will NOT go down to $0.00, as someone will step in with a takeover bid long before that point. The Daylight Energy rollercoaster ride was a few years back. If you'll recall Daylight (DAY-T), investors pushed its stockprice down quite severely on the basis that the dividend was too high. Eventually, when it was pushed down enough, the Chinese stepped in (Sinopec) and bought the company. Renegade is not in the Oilsands, and is not a major company, therefore, unless Brad Wall decides to pull another Potash Corp style of intervention, a foreign or domestic takeover is a definite possibility. And, with just 24 jobs and a head office in Calgary, Brad Wall could probably care less about who owns RPL. So... takeover? Who knows? But sometime tomorrow or Monday I will likely be stepping into this... should be interesting.