Peregrine Diamonds Ltd. PGDIF

RE:DDC

[ekim]

On first read of the dividend for DDC, it appears they want to distribute some cash to shareholders and future profits and that would seem to go against expanding outside of their own properties (beyond Jay pipe, etc.) and take over another company.

That is the cash side.

However, when you do a dividend...all of a sudden the market takes note of the yield.
Depending on the risk the market gives to that yield..the shareprice will adjust.

DDC might be hoping that the Dividend will increase the shareprice because of this and if they can increase the shareprice even more, then they have more paper power and can still do acquisitions on a share for share basis with stronger paper power.

That is one theory I believe might be part of DDC's dividend plan.

We will see if they bite at anyone else...and also if the dividend does increase the shareprice.

LONG...PGD

EKIM