Lightstream Resources Ltd. LSTMF

RE:RE:RE:RE:RE:RE:RE:RE:Banks likely to force cutbacks in capital spending year-emd

[tcelling]

Here ya go:

"The problem is that a company cannot afford to pay this high of a yield for an extended period of time and this is why they had to cut their dividend last year this time.    So unless they can move the stock price way , way higher  ( very unlikely with oil prices where they are )  then they will have to cut their dividend and more than just in half like they did last year this time."

As just explained. The divi is NOT dependent on shareprice.

highrider1 wrote:
  Please copy and paste where I said this " tcelling '.      Support what you " imply " by copying and pasting as I know exactly what " yield " and dividend is as I explained to  " peplare " earlier as seen in my post below.
 
  The yield is the percentage of what  they pay compared to what the price is.   If the yield is too high  ( the percentage of payment is too high compared to the stock price )  then they cut the dividend accordingly so as to get the " yield " back at a percentage that the company can afford.
 
  Any company cannot afford to keep paying double digit yields for extended periods of time.  Most people know this and realize that this is why the companies cut their dividends such as LTS did last year this time.  
 
   And last year this time when they cut their dividend the price of oil was approx. $ 97 / barrel  ...    not under $ 67 as seen below.  And thus the " yield " back then before the cut was  ( .08 x 12 = ..96 cents .)   and their share price when they cut was approx. $5.50.    So the yield a year ago when they cut was  .96 divided by 5.50 = .174545  times 100 =  17.45 % .  At 17.45 % they had to cut so what do you think is the logical thing for them to do with an even higher yield ????     The yield is the important thing as it shows the percentage of what they are paying out versus their stock price.
 
   So I hope this helps to clarify things for you  " icelling " .
 
 
 
 
  NYMEX Crude Oil (Near Future)($OWTI:New York Mercantile Exchange, US)

66.25USD7.44(-10.10%)Volume: 

Above Average

 

As of 28 Nov 2014 at 1:50 PM EST.  

 
 

RE:RE:RE:Banks likely to force cutbacks in capital spending year-emd

  I am not sure that I understand what you are asking  " peplare ".     Below you see what they pay ( right now ) which is a monthly divind of .04 cents.   So this is a yearly dividend of  ( .04 x 12 ) =  .48 cents .    
    Take the .48 and divide it by the share price  ( .48 divided by 2.60 ) = .184615 .      Then multiply this by 100 to get your % yield.  ....    = 18.4615 %  ( as seen below.
 
   Now for example if the share price fell to $ 2.00   then the yield would go up proportionately.   You would still only get the same dividend ( .04 cents per share / month = .48 cents / share / year )   but the yield would then be ......
 
 .48 divided by 2.00 =  .24    ...   x 100 =      24 % yield.     
 
   The yield changes as the share price changes but the dividend remains the same.    The problem is that a company cannot afford to pay this high of a yield for an extended period of time and this is why they had to cut their dividend last year this time.    So unless they can move the stock price way , way higher  ( very unlikely with oil prices where they are )  then they will have to cut their dividend and more than just in half like they did last year this time.
 
   Hope this helps.
 

Quote Details

 

Open	2.60		P/E Ratio (TTM)	--
Last Bid/Size	2.60 / 267		EPS (TTM)	-6.55
Last Ask/Size	2.61 / 132		Next Earnings	9 Mar 2015
Previous Close	2.59		Beta	2.47
Volume	1,632,453		Monthly Dividend	0.0400
Average Volume	1,863,512		Dividend Yield	18.46%
Day High	2.82		Ex-Dividend Date	26 Nov 2014
Day Low	2.55		Shares Outstanding	200.6M
52 Week High	9.09		# of Floating Shares	191.8783M
52 Week Low	2.28		Short Interest as % of Float	--
DRIP Eligible	Yes

 
 peplare - (11/28/2014 11:39:46 AM)
RE:RE:Banks likely to force cutbacks in capital spending year-emd

Highrider do you think they pay more out in dividends when the yield is higher