AvenEx Energy Corp AVNDF

Buying Op?

[Kisu]

Deal will not be sealed until Feb.  Until then AVF will pay their dividend (I hope) and if as their advisors assert, it is an equitable deal, AVF should climb back to $3.32.  Any other thoughts?

 

[nwahsrm]

It won't climb back to $3.32 because that price was underpinned by a 0.035 cent dividend which just got cut. That is also the reason why pace and charger are not trading up to the values listed in the nr, as those prices were based on 3.32 per avf share and not the new valuation based on a reduced dividend.>

[Kisu]

At $3.32 and a $0.035 dividend the yield was a 12.7%.  At the same price, a $0.03 dividend the yield drops to 10.8% - still a generous payout.  At the current price of $2.79 the yield will be 12.9%.  

[nwahsrm]

It is a generous dividend. However, people weren't, t paying $3.32 for a 10.8% yield, they were paying for a %13 yield. Hence the share price fell to return the yield to that level, which highlights how risky the market assesses this dividend to be...>

[jacek99]

Nobody said our current dividend is being cut, did they?  We'll continue @ 3.5/share until the new entity is in place, right? Am I missing something?

[pone]

No one with a brain was buying Avenex for their oil and gas!!    And the world doesn't need yet another debt-ridden Canadian company that is just a play on commodity prices.      The value in Avenex was Elbow River.

[Kisu]

I presume you have sold your shares by now and bought Parkland.  

[jacek99]

Me, no...  I will hold out to get my purchase price back.  Dividend is still sweet and even if the new entity trades @ 10%, that still gives us a price of $3.60.

[pone]

Parkland is a very overvalued asset.   I did not buy them.   I want to sell Avenex at a higher price.  There is no reason to panic sell like other retail sellers did at open.