RE:RE:RE:RE:RE:On The Topic of Dividend CutsIn this context, burn is a relative term. In any case, it ends up in your pocket - either as a special lump sum dividend or one amorotized over a longer period. Hardly "burning" IMO.
retired234 wrote: Contrarian333 wrote: Management has indeed intimated to me twice that the .67 would be incremental capital that could be returned. This makes sense. If there is no royalty to be had they have no business holding the cash in to the indefinite future in hopes of finding one. Netting out the return of capital and assigning a more reasonable 6% cap rate to the .14 cents of distributable cash gives you basically today's price and so no big discount to future raises if a suitable royalty stream is eventually found. However, more likely if no opportunity exists you get the excess capital returned and the stub company is sold.
They will burn that 67 cents before giving it back ..............imho