TSX:LIQ.DB.B - Post by User
Comment by
Goldbuggy1on Feb 12, 2016 3:56am
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Post# 24551346
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Capex
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:CapexDoubleOhDiv wrote: I did read from the start and I do understand all that.
However, if they do not split adjust the div/share then we are talking about a div cut or increase.
That wasn't the point the OP was trying to make.
All he was saying is that a 2 for 1 split would create a lower split adjusted div/share.
Anyway I think this is all moot because it would probably be a very bad idea to do either a split or reverse.
The share price is not high enough to support a split and reverse splits are almost always treated negatively by the market.
So do you think that a Dividend Cut by 50% right now is Good News for the Share Price??? It was only suggested that if the company plans to cut the Dividend by 50% anyway, and (IF) is a big word here, there was 2 ways of doing it. Revers-split 1 for 2 first then keep the Dividend at $1.08 per share, in essence keeping the stock out of Penny Stock Territory, or just cut it at 7.15 putting it closer to a Penny Stock if the share price dropped. Not many agreed it was a good idea that a split was a good idea at this price as it then becomes a Penny Stock. A Reverse-split might be better if the company planned to sell more shares, as this may result in a lower share price and thus keep them out of Penny Stock Range. If the company doesn't plan to cut the Dividend, or sell more shares, then there is no reason for the company to do anything. I really don't understand why this is so confusing.