RE:RE:RE:**last q1 hiccup ** Overdone **prested wrote: I don't think our friend was referring to an increase in dividends, merely pointing out that the continuation of what is already a spectacular dividend is something to grateful for. I am sure that when the Sp tanked there must have been some discussion in the boardroom as to whether the dividend as it presently exists wasn't too high at 13.00+%.
I take their decision to keep it where it is as an indication that they expect the yield will be lowered by the stock appreciating. That is the kind of thinking that I like and why I just bought some more.
Let's face it, how many of us have made any serious money listening to the 'professional' pundits who know F/A about how this company works? GLTAL
The dividend level should not be a consideration when looking for the market value of a company. A company that doesn't pay any dividend is not any worse than a company that distribute dividend. That being said, when the dividend yield is too high, it is due to concern over the future net cash flow of the company. As for now, GRC is riskier than before and therefore trade to a lower multiple based on the risk involved.
Like you all know, I was before a shareholder and sold my position at $0.75 for a return over 50% without even counting the dividends (see post back on April 19). Would I consider an entry point at this level? I still find that the risk reward is not there unfortunately. I would need a few quarters of results before being convinced that the management can deliver on that specific business model. But for now, we have other royalty companies with different models that are less riskier and with more upside such as DIV. I have to say that what I like in GRC is that the risk is very well diversified in many small investments, but over time, we will see less and less of buyouts due that it occurs generally in the next months / years after an agreement. Also, the market now understands perfectly that loosing an investment is part of the business model, but unfortunately, management made in the past big mistake that were not forgiven by the shareholders.
GLTA and hopefully GRC will show some interesting progress so I can jump back in,
Cheers