Rogers Sugar Inc T.RSI

52 week lows

[FarmerSask]

Steady earnings report, dividend announcement and upbeat conference call followed by new 52 week low stock prices.
Looks like someone doesn't like the new debt coming for the expansion.
Anyone else know why stock is languishing?

[stockpunter]

weird isn't it?  The only thing that makes sense to me is that the dividend isn't very attractive with current GIC rates over 5%.  Lots of high dividend blue chips are avaiable cheap.  Share prices supposedly will adjust up when interest rates drop.  If they drop! Take a look at insider trading reports.

[DeanEdmonton]

StockP- Dividend has little to do with it. If this company issues $100 million dollars worth of shares to fund part of the $200 million expansion, that is a 20% dillution. With a $6 share price, the diluted value is $4.80.

[stockpunter]

That makes sense... if they burned the money.  LOL

[nedstar71]

Well said.  Talk about fuzzy math.

[DeanEdmonton]

StockP- When you spend nearly 50% of the undepreciated cost of your hard assets, and nearly 100% of the depreciated value, to get a 12% lift in volume, you ARE BURNING the money. Same as the money they burned buying the Maple Sugar operation. Purchased for 160 million, $100 million of the purchase price has been written off within 3 years of the buy. OUTSTANDING leadership and board oversight, NOT

[stockpunter]

The dividend has been static for many years and will look highly attractive when 5%-plus GICs disappear. The last dividend increase years ago happened about when the share price nearly doubled. The current SP is off its highs but same with other blue chip stocks, like banks and telecoms. Food is considered a defensive investment in times of financial uncertainty The population of Canada is