RE:RE:RE:Divi cancelled due to low SP, will be paid when SP recoversEverything you have said here is wrong except that you have gone on about this before.
Read it again. This is fact, not opinion.
2fast4uI wrote: What it regonizes is that THE BALANCE SHEET IS OVERLEVERED, THAT THE LIABILITIES FOR POINTS ARE REAL, and that book value is a WHOPPING NEGATIVE FEW BILLION!!!!! The market cap test is in place for when a companies market cap backs up the value of the good will on th balance sheet...................NOT THE CASE HERE.................althought it does back up some goodwill otherwise MKT PRICE WOULD BE -VE.....................SO FUNNY.
Many have, including me, have set out very detailed posts on this.................bUT the like of CCABTU0 and ProTrade say we just basher and that we are full of BS.......................thanks guys ......so FUNNY!
fiveniner wrote: Good explanation of why dividends were suspended (not cancelled)
https://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/tsxaim-aimia/msg301900/#msg301900 The release says they are compliant with CBCA clause 42(a) but not compliant with 42 (b) due to the decline in the market cap and the high value of the capital account due to the issue of shares at higher prices. The clauses are below. What they are saying is the value of the business is now lower than the liabilities plus the stated capital of all classes. And they're almost certainly right about that! That wasn't the case when they last declared a dividend (May 10th) because the market cap was higher. So this doesn't have to be an excuse. It is, however, very positive for pref holders: they should have stopped the common dividend immediately and stopping it transfers a lot of value back to pref holders. The clauses: 42 A corporation shall not declare or pay a dividend if there are reasonable grounds for believing that (a) the corporation is, or would after the payment be, unable to pay its liabilities as they become due; or (b) the realizable value of the corporation’s assets would thereby be less than the aggregate of its liabilities and stated capital of all classes.