NORTHERN BLIZZARD RESOURCES INC T.NBZ

Stated reason for halving the dividend

[TickerTwit]

On today's NBZ results call, an analyst asked about the dividend cut. The company's answer was that the cash was not a problem, but the dilution was a problem. I agree that dilution can be a problem when stock price falls and drives yield up, but why not simply suspend the DRP (as GEI did recently)?

The answer seemed disingenuous to me; GEI's handling of it made more sense. Other opinions?

[bshort92]

Am glad they halved the dividend. Would like to see them eliminate it completely. Would also like to see the shares sell off further to say under $3 a share. Getting in at the bottom would be a safe bet in that NBZ has a bright future: Majority of the float owned by a huge, deep pocketed US based hedge fund plus management has decent skin in the game. They have two potentially lucrative SAGD

[Throwitinahole]

this stock relative to its peers has sold off incredibly. I just picked up more at 3.89. Throw

[Thanksforplaying]

I bought some too.  Td crossed 500k shares.  Selling will dry up. This sell off is way over done

[tvstock]

If that div cut caused the stock price to drop, that in turn creates more dilution. A very foolish move. They have the cash, good hedge, and good funds flow and end up with this mess.

[BIGBADALBERTAN1]

They need to fully cut the dividend until oil comes back... im quite surprised they didnt yesterday. Investors understand the need for cuts at this point

[BannedBillyBoy]

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[BannedBillyBoy]

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[tvstock]

Because the stock tanks  and more stock has  to be paid as dividend. Am I correct? Of course the amount of dividend is halved, but my speculation is that when the stock is around 8, somebody somehow already know this intention.(June 1st NBZ drop 64 cents on absolutely no news and oil prices are strong)  Subsequently tIll  now the stock price is chopped in half.   Ther

[BannedBillyBoy]

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[tvstock]

Am I correct? Not sure. Suppose   $ 4.41M     dividend  will be paid through DRIP.  Assume  no discount. At yesterday's SP    of 4.41 , 1 million shares will be issued. But after today's drop of stock price to 3.9,     4.41/3.9 =1.13 million shares have to be issued. 13% increase?   Please correct me if I am wrong, thanks.

[Thanksforplaying]

. Looks right to me.  It is very dilutive.  At 4 bucks it's a million shares a month. 

[tvstock]

I think they should follow Journey Energy's approach.  Acquire half of the DRIP shares from market directly.  That will be accretive.

[BannedBillyBoy]

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