RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:what is going onborne2run wrote: 2/2 MD, Since I am not interested in going either long or short, I have not performed a detailed analysis of the balance sheet over time. However I did briefly look at the 2016 / 2015 Q4 comparisons.
Since everything eventually flows to the bottom of the B/S, I pay particular attention to the Shareholders' Equity section. I note that y/y, this increased by approx. $40 million. However share capital increased by $38 million and Intangibles / Goodwill increased by $9 million. So, despite having one of the most profitable years in its history, EIF was barely able to fund its dividend with the profits.
As for re-purchasing shares, the NCIB resulted in the cancellation of 57,710 shares but 176,522 shares were issued under the DRIP.
At the beginning of 2017, 2.3 million shares were issued, representing an increase of 8%. Unless Q2-Q4 are record breaking quarters, I believe that EIF will not cover its dividend this year, i.e. shareholder equity per share will decrease. This supports Marc's position that the current dividend will lead to shareholder dilution over time.
if it were me, I would be cautious to base an opinion, even if it was limited analysis as you say, on one line item from quarter over quarter analysis.
For instance if instead of quarter over quarter, you looked at 2016 anual vs 2015 anual, you'd see that SE went up by ~$40 and intangibles actualy went down by ~$5m.