OTCPK:MGMXD - Post by User
Post by
BoldForbeson Jul 20, 2016 7:16am
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Post# 25067796
Loan Extension = Delay In Dividend Discussion
Loan Extension = Delay In Dividend DiscussionI was not in favor of a dividend anyway (see previous posts). But I will double down on a prediction of no dividend in the next 12 months. Why?
A certain $55,000,000 loan extension. This will stay on the books as short-term debt, making the financial statements and ratios look odd. I have no worries this will be refinanced to long-term.
However, this is a great reason and a way for the board (and management) to save face. They could states something along the lines: it would not be financially prudent or fiscally responsible to issue a dividend whey trying to negotiate terms for the new long-term debt (, BUT BOY just wait, because we really, really want to!!! We just can't, it is out of our hands...)
i.e. they have their "out" to continue to say a dividend is coming, just not yet...
Just sharing a thought I have had bouncing around for a few days,
Bold Forbes