TSX:LIQ.DB.B - Post by User
Comment by
DoubleOhDivon Feb 12, 2016 8:09am
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Post# 24551566
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Capex
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Capex:-) It's not confusing.
I'm just pointing out that we're talking about different operations here.
A split or reverse split is a VERY different thing than a dividend cut or raise.
I don't see why these things need to be coupled at all.
These moves by a company to try to "hide" a dividend cut or raise by doing some sort of split, at the same time, would not fool anyone and no company would be stupid enough to think it would.
i.e.: If they announced a reverse split, for example, and kept the div/share the same, the company would ALSO have to announce a 50% div reduction. This concept is NOT included with the reverse split operation and is something else entirely.
So, since you asked, this is just my opinion of course but I think LIQ should just stay the course right now.
If they:
1. Do a 2-1 split, the share price would become dangerously low.
- You mormally do this when the share price is so high that some investors are not willing to buy shares. i.e.: Some investors get afraid when the share price seems too high.
2. Do a reverse split, this is almost always taken as bad news by the market and I'm sure would do more harm than good.
3. Do a div cut/raise, now this is something the board really has to consider objectively for the overall good of the company.
A cut is almost NEVER a good thing for the share price, but is just something a responsible board will do if required for the overall health of the company.
A raise is a good way to drive up a share price but this needs to be done at a logical time, based on cashflow and the payout ratio.
BTW: I do like reading/replying to posts but may I suggest using the enter key to space things out a bit?
It would make your posts a lot easier to read.