Alterra Power MGMXD

RE:RE:inaugural dividend

[BoldForbes]

Very interesting news today.  I would like to understand managements and the boards philosophies for reaching the decisions.

Initial Thoughts:

I am a supporter of Alterra, but the dividend to me just doesn't make that much sense to me at the moment.  You initiate something you better not revoke, if anything you better increase over time.  The company can most likely support the dividend growth with future projects.  This might be a signal that there are more project in the pipeline than previously suggested and/or the refinancing is almost completed.

Another reason the dividend might not make sense is it comes in the face of potential US interest rate increases.  An interest rate increase might negate the effect of the dividend; especially a small amount.  Wouldn't you rather invest in growth at a faster rate?

I would also like to understand why after years of being comfortable with a under a $1 share price, management has decided to to a reverse split.  I wonder if this will help a supply and demand of shares?  Going from ~400M to ~40M

To me, management is sending an optimistic signal here.  They might have even raised expectations.  I have learned to manage expectations carefully.

I hope management, insiders, etc. do not sell shares the rest of the year as it would send an awkward sign.

Let's let the market digest this news; overall a good surprise in my book.

Bold Forbes