Post by
MyHoneyPot on Apr 20, 2021 9:14am
NVA Share Distribution
It would work like this, they would tell every share holder of POU that they would get .32 NVA share. If the share are trading at 5 dollars when they do it, you would get what is equalivent to a 160 dividend.
However if they do it with shares it is not immediately taxable, so it is in the premium dividend class.
However they have other shares they can do that with, Meg shares, Pipestone shares, and Waterouse shares.
It might be that POU wants to distribute dividends in the future not in the form of cash which is immediately taxable but rather in the form of equity.
Candidates for redistribution, (Strathcona Shares, NVA share, Pipestone shares, Meg shares, manybe a fox drilling transaciton and PD shares, Fracksand shares, and a number of private companies we know nothing about.
Is there only one way to pay dividends, 1 cent a quater the Cresent Point way. A meaningful dividend will likely be in the form of NVA shares to start with, and likely once NVA gets to over 5 dollars a share, and Karr is at 41000 boe spewing off 300 million in FCF a year.
IMHO
Comment by
Sugaree on Apr 20, 2021 12:08pm
When do you think NVA may get to $5.00 a share so we can get that share divided?
Comment by
Raymondjames on Apr 20, 2021 3:02pm
Not necessary to get to $5. It can be done whenever the balance sheet permits and JR is inclined to do it.
Comment by
MyHoneyPot on Apr 20, 2021 11:20pm
Good question, at 5 dollars you would get $1.60 in NVA stock, arx resouces pays .24 cents a year so in six years from now if you don't get a dividend you can kick yourself for not buying arc resouces that pays a measly dividend now. IMHO