Mr. Kayne knows the market LOVES unpredictability! So come a few week's time we'll get a monster special dividend. Just like last August. With the share price in the tank it ought to be worth ~8% of capitalization.
We all know that a $1.00 special dividend is equal to 4 years or 16 quarters of regular dividend payouts as the dividend is low. Sarcasm font: DON"T INCREASE THE REGULAR DIVI WHATEVER YOU DO! Keep those retirees and pension funds guessing. They love to guess. Who needs steady income with interest rates so high? Who needs stability? They really do like to guess! You know best for Grandma Ethel!
The only exception to this is when you have to have a 'variable dividend policy' like Norbord -- they have been making moves on inorganic growth and have so much commodity volatility they pretty much have to. Unlike CFX on both counts. The Street also hates a VDP, but so be it if you are growing in other ways.
Seriously. Just wow. CFX you're a de facto utility with the power revenue and NBSK stranglehold. You have nowhere to grow, no debt, minimal debottlenecking opps -- act like it. Just grow up -- you don't need a war chest to go on annual drunken special divi spending sprees. You're better off in Vegas. Stop screwing around a pay a steady 8% to 10%. Then you won't need to be the bulk of the liquidity with your own share buybacks. A reasonable payout percentage counts for a lot.
The news will also come on this bio-oil thing with the capacity of maybe 1/800 of a Suncor mine. 400k barrels, per year not day. Yah. At best you might make $10/bbl on this. So $4M a year?
I'd like to see a little bit of pushback from the investment community in the conference call over these brutal optics. Act like a blue chip -- be a dividend grower. Quinn at RBC or Swetlishoff at RJ are the guys I think may hold management to account. I'm not saying the Canfor folks all need to do night school MBAs, but please don't be financially illiterate with respect to their preferred insanity: feast and famine allocation of capital to shareholders. Pattison, help me out here!