RE:RE:RE:RE:RE:RE:RE:RE:Winter is coming...FreeCashFlow wrote: Of course buy backs are palatable! Jesus Christ they revised their website twice , 2 times , to reflect to surprise increase in cash flow
from the surprise increase in gas
prices . So pay the shareholders first ! Spin all the scenarios you want this cash flow is beyond anyone's expectations..... pay the god dam shareholders now Phil and stop the bulls hit .
I understand what you're saying. I also understand ceo's that tell stories to keep investors biting or as I have called it before, carrot dangling. However, in this case, I think debt should be paid first even though they made the mistake of taking too much debt to begin with and shareholders paid the price while they still collected salaries and issued new cheapo options to themselves. good gig.
Technically, dividends are to be paid out of NET profits from the revenue statement and profits show up as retained earnings on the balance sheet and they really don't have any net profit/retained earnings but a large accumulated deficit (losses) on the balance sheet like every other junior and intermediate did. that's why they were all under immediate stress when the world and markets crashed....no equity.
At 9 or 10% interest rate for debt I still say the best move is to pay off that debt. It will improve the balance sheet, and share price eventually. While actual cash won't arrive in your bank account like a monthly dividend would, it will show up indirectly in capital appreciation as paper gains until those gains are realized. In other words, when you sell.