RE:RE:Good Bad & Ugly
maplak wrote: I have sold 2/3 of my holding during the financing and switched to AD.UN which I hold in TFSA. DIV reported earnings after they raised the money. Did they use some of it to cooked the earnings? They said the loss widened and pay ratio is 90% . Also not sure about the burritos since scaddabush ( SRV. UN)
is struggling a little bit. Also own. I think DIV is a dog so AD.UN and share price in both is going anywhere.
AD.UN payout is 65-70%. Usually share price in companies with higher dividends does not appreciate much that is why I am buying some
" eagles " as well like lately Citigroup to preserve the capital. I have seen a lot of companies paying dividends over 10-15 years but at the end the value of stock dropped 50-100 % So what's the point owning dividend stocks then? Good thing is that we are at the beginning of cycle when interest rates starts going down. The anals will be biching about overpriced market but investors won't have a choice but keep buying in. Why? Because there is only one pile of money and since real estate and land is overpriced everybody will be feeding equity goose. Plus a lot of money will be moving from GIC's to stocks as well . You people don't have an idea how much money are companies contributing into pension funds for their employees retirement. Zillions. So don't worry the equity " goose "
wil be well fed in upcoming years.
So your alittle (by that I mean ALOT) all over the place...
The cash raise was done after the reporting period that we seen, so it had no effect on those reported numbers. It was done to reduce the amount of interest we pay and to be prepared to strike off anouther deal happens...
Really all that raise did was dilute shareholders a very mild amount (I'm not overly excited about that) and it dilutes the upcoming per share metrics a minimal amount, the royalty raises coming should still counteract that move.
The shares still have 10-15% upside to what I'd say is fair value, and I myself will not be adding, but it's not a poor holding either...