Parex Resources Inc T.PXT

I rather have the Dividend Cut than the company take on DEBT

[CrazyTrader]

if they want to continue with Buybacks and looking for extra cash to do it.

[unc12345]

Disagree.  One of the the big positives of the company is lack of debt.  Right or wrong in terms of the metrics, that's the perception IMO.  If you take on debt AND you are operating solely in Colombia, you are asking for trouble. 

[CrazyTrader]

unc12345.... you totally misunderstood what I said.   I'm not sure why but you are not alone.  People just refuse to READ and Understand what I say.    All they are interested in is to DISAGREE with me, even though what I said is basically in agreement with what they are thinking. I don't want the company to take on debt.   So much so that I rather have

[joebravo]

If they cut the dividend, the share price will drop like a rock. Just look what happened to any other company that did so and you will see.

[CrazyTrader]

joebravo, it depends on the REASON for the Dividend Cut if it happens.   YES, most of the time when a company cuts the dividend the share price drops, that's because most of the time the REASON for the cut is because the company can NOT pay it.    This is not the case with PXT.     Many companies don't even pay a dividend and thier share price keep

[unc12345]

My apologies for the mistake.  I guess I did misread what you said.  When I read "take on debt", I guess my mind sorta stopped processing LOL. What I've learned from years in the market is that it's all about perception.  Regardless of where they are paying the dividend from, and almost regardless of what the numbers actually say, a dividend cut would be

[CrazyTrader]

Hi unc12345, you are a rare person, you actually realized your mistake and apoligized.    As long as the company CLEARLY states the REASON for the dividend cut (ie rebuild balance sheet and not because it can not pay it), I think the market will understand and will in fact REWARD the company by supporting the share price.  All just my opinion.......  as what I would do (buy

[JoeBravo1]

What's their payout ratio?  It's under 51% correct? No need whatsoever to cut the dividend.  Actually, they could raise the dividend and not feel much in relation to cashflow. As for buybacks.  They don't need to borrow money for buybacks, as they have more than enough cashflow to cover buybacks. Buybacks lower the number of O/S and thus help increas EPS.