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babedinkleman wrote: JayBanks wrote: It's somewhat nice to know they are finally doing something with some money to maybe support the payout they make (and I might be able to escape at a higher price). Not trying to call you out Jay as I know you know what you're talking about....but really 'maybe' support the payout they make? The interest off this loan after taxes will probably only cover about half of the payout they make by my bad math. If anything all this investment does is expose the idea that in no scenario whatsoever will they ever be able to even come close to covering the current payout. Unless some unsuspecting dividend seekers get fooled into not knowing this why would this move the price higher? If anything it should move the price lower. Not that much of the almost non existent 'trading' in the stock is even 'real' in my opinion...if you know what I mean.
JayBanks wrote: It's somewhat nice to know they are finally doing something with some money to maybe support the payout they make (and I might be able to escape at a higher price).
Not trying to call you out Jay as I know you know what you're talking about....but really 'maybe' support the payout they make? The interest off this loan after taxes will probably only cover about half of the payout they make by my bad math. If anything all this investment does is expose the idea that in no scenario whatsoever will they ever be able to even come close to covering the current payout. Unless some unsuspecting dividend seekers get fooled into not knowing this why would this move the price higher? If anything it should move the price lower. Not that much of the almost non existent 'trading' in the stock is even 'real' in my opinion...if you know what I mean.
Don't worry I've looked it over and agree with your maths and thoughts, all this transaction does is slow the bleed. The stuff in brackets is my 'pie in the sky' hope lol I'm looking to exit hopefully without an overall loss, I need like 16 cents gain somewhere to do it, tho if it starts to unjustly move back towards $2 I might stick around with a trailing stop just to see where crazy goes... The only way to fully support the payout would be to make 2-3 more of these deals while getting funding at a low borrowing rate from the bank, if they increase the share count they would need to do 4-5 deals.
