OTCPK:TNGZF - Post by User
Comment by
Backwardbladeon Sep 10, 2015 10:57am
261 Views
Post# 24092435
RE:RE:RE:RE:RE:Good News
RE:RE:RE:RE:RE:Good NewsSound reasoning...for established long term stocks. This is not one. Yet.
I am getting 8.5 % on my invested capital right now. I am ok with that. Its presently offering 11% on new money. That is alot. It can scare away large blocks of conservative long term interest.
I think we have to wait a few quarters to see how things pan out, so company can display consistant returns (they are) and alleviate any fears of their due diligence going forward. The fact that they have financed in such a way to incorporate such losses is good, but the market is a fickle creature. And in a volatile market with a low volume stock this can lag.
There is also the rash of dividend cuts that have happened to the energy markets which have put fear into the retail markets as well. This is not an energy stock, but high dividends can raise red flags, thus lessening demand.
This stock offers large growth potential AND a dividend. And it is volatile. And as such won't neccessariily provide the bottom protection the dividend usually offers. This company needs to display good financial discipline to validate the dividend. And that means very long term, safe investments and cash if no present acceptable choices are available.. To offer more money to present shareholders would invalidate the story to new investors.
A big wad of cash on hand, while supplying a supposed 25% rate of return would generate a lot of interest though...not to mention the possibillity of quick volatile capital return that a penny stock can offer.