RE:RE:RE:RE:RE:What do you think will happen next with BPF.UN? BP opened 5 new ones but also closed 6 permanently in the past 12 months. Same restaurant sales had continuously declined for the 4 quarters, with Q3 dropped by 4.2%. Current SP factored in these considerations from last press release, so any additional negative news including div cut should sag it.
For NCIB, if I am not mistaken, BP can use OI for repurchase, and they can borrow to pay div and operating needs?
I am more concerned about AB's economy outlook since a lot of stores are clustered in the region. The quota/ban is still in effect, if it continues, it may hurt BP's sales, in turn, distributable cash.
We can probably speculate SP in Jan for the pre-ex-div-date surge, Feb should have Q4's and full year's financials release. Though I am not realy looking forward to this since it sagged Q1-Q3.
Sadie222 wrote: A 10% cut to div would result in a yield that is still north of 9% at today’s SP while bringing the payout back comfortably under 100%. I think the SP wouldn’t be hit too hard. They do need some good news, though, or the sag will resume.
Borrow for NCIB? No way. Would the prospectus even allow that? I could see borrowing to acquire another royalty stream, maybe, if the prospectus allows that. Unlikely, though.
imho
Tony101 wrote: Perhaps it will eventually cut dividends to balance out distributions, but cutting div will drive down SP. The current decline in sales happens in an economy when we aren't exactly in a recession yet. If the economy goes into a full-blown recession, the sales will be worse and so do SP. Along with a potential div cut, it's gonna hurt share price.
Considering debt is cheap, would you say it is likely to borrow to do both a normal-course issuer bid (or substantial one) AND a div cut? to balance out the neg and pos impacts.