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“ Putup why so gloomy”
Gloomy? I’m not. Once again, I like the stock. I will be reinvesting my dividends at these levels. But I’m also realistic and basing my expectations on solid analysis rather than hype. We should do a poll to see how many hypers are actually pocketing their divis and reducing their VAR. Then we will understand just how bullish they are.
As for 190p it’s already been there and the resistance line proved a nice level for short term profit taking for those who like to trade.
Putup why so gloomy. You must still be holding. Don’t worry your 190p target price is coming soon.
Kaaran what do you mean it’s happening? Do you mean that you have sold? Or are you still holding on for 190 as per your earlier. If so you must be a believer. Cheer up!
keep searching for enlightenment Grasshopper FlyingHorse1
(PS I have greater confidence in the KRG than Kaaran, simply because the KRG needs the oil cos more than anything else, but you do need to get some basic finance principles under your belt.)
That's assuming you are stupid enough to have confidence in the krg in the first instance.
My confidence went about 10 years ago nothing but a bunch of crooks.
FH1, dude, it’s not a “belief”. It’s happening. Don’t you see the share price? Let’s wait for month end. Hopefully payment is coming in and it’s the beginning of a turnaround. Confidence in KRG is rock bottom.
Kaaran and Putup if you believe all the stuff you say then it makes no sense for you to hold any stock.
No amount of dividends will help the stock price unless confidence returns that GKP gets paid in a regular and reliable manner. In particular, if there is no payment by the KRG by the end of this month we will get another dump.
I just received the voting sheet for the AGM. I’ll be voting against the re-appointment of all the legacy directors. Way too much dead wood on the board. They have been supremely ineffective. I’d encourage all other shareholders to do the same and vote them out. That’s the only way to get some change.
PUTUP - I by no means saying I'm an expert but although I agree with your explanation there is a bit more to the story than that isn't there?
For example, investors evaluating a company on its dividend payed would value the company differently depending on what dividend is paid. In your scenario the company could pay a 0.1% or a 25% dividend and the result would be the same (in terms of company value) but in the real world that isn't true as company value is related to dividend policy.
Further, what about reinvestment of dividends? Even if that makes only a short term difference to the share price it would have some impact at the time the dividend is actually paid. This is true even if a small proportion of dividends are reinvested.
Finally, as much as I've seen the drops when going ex-div; over the time before that to the time after payment the share prices have so much variation in the meantime, it makes the discussion a bit meaningless!
"So money building in the account is not a value creating event but spending said money destroys the value of the company"
It is the expectation of earning/receiving more money than previously expected, or the lowering of the risks attached to such, that builds value. Actual receipts meeting existing expectations is much more modest in terms of 'value creation' - the expected is merely happening. You use the term 'spending'. We were talking about dividends. Paying a dividend isn't the company 'spending' money. It is paying that money out - giving it away to shareholders. It's not putting the money to work. And of course when the company gives away cash for nothing in return the value of the company, all else being equal, should fall. Basic stuff highlander. You really need to come to grips with such things.
LOL,
talk about mixed messages
"The receipt of something already expected isn't a particularly value creating event"
So money building in the account is not a value creating event but spending said money destroys the value of the company
No wonder the share price is 1.6p
"so by your fackin obvious statements, the company value should be rising every time there is a payment..."
Why ever would you draw that conclusion? The receipt of something already expected isn't a particularly value creating event. Now if expectations change that's a different story.
If you are that bearish then you ought likely to sell
so by your fackin obvious statements, the company value should be rising every time there is a payment...
but it doesn't
but yet you expect the value to fall circa 14% to reflect the monies leaving the accounts.
It will probably fall more than that from this point to reflect the sheer stupidity and incompetence of so called executives that infest the boardroom of this company.
If they spent more time running the company instead of dipping their hands constantly in the till then this company would not be where it is now.
" What do you mean?"
It's pretty fackin' obvious. You own £x amount of stock today. That's your value at risk (VAR). (You own the forthcoming dividend today in that value amount.) All else being equal, when the stock goes ex div the share price will fall to reflect the money leaving the company (the company is worth less because it has paid away cash). The value of your shares will fall but you will have money in your brokerage account. Your VAR will fall; your exposure to the company's stock price will fall. You can create a 'dividend' anytime you want by selling some. If you think the company is cheap, you wouldn't ordinarily like to reduce your VAR. You'd want to reinvest your dividend (and in fact you ought to prefer a return of capital via a buyback in which you didn't participate). In fact, a dividend is a pain because (a) you might incur taxes which is a leakage from your VAR and (b) you are subject to the risk that you might not reinvest at the theoretical ex div price. Investing 101.
As a long term holder and still seriously under water every penny dividend I get will be going back in and growing the size of my holdings.
I don't care about the day to day share price movement I've neither the time or the energy to follow it and will just wait for the company to be sold at a far higher price than what it's valued at today.
Good point. I suppose if you sold the moment before going ex-div then it would be equivalent to taking the dividend. However, it does assume that nobody else reinvests the dividend (I think).
Correction
Should of course have said it generally falls when it goes ex-div, not when paid.
Don't forget the "ex-dividend" effect - most shares fall (generally by the dividend amount) immediately following the payment date.
Depending on dealing costs, etc, and by how much it actually falls, you might be better to take the divi and then buy on the drop but it could go either way.
This year, because of the additional Special Dividend to be paid a month later, and taking into account the "mood music" that could emerge from the AGM, it's not at all clear just how the SP will behave.
Needs approval at the AGM first.
When should I expect to hear news of the dividend from my share dealing service? Am I right in thinking there was a previous dividend? Could some kind soul please advise when that was and how much? Many thanks in advance.
Ah, I get it.
Thanks for that IAm.
SC
It isn't the same and they didn't finish the thought I believe.
Presumably they meant you'd be in the same position if you sold now and reinvested the dividend, vs waiting for the dividend and keeping the money when paid.
‘Pocketing your dividend is the same as selling some today. Just saying.’
Okay PUTUP, reluctantly I'm in.
Explain…because right now it reads like you posted it in a drunken Saturday early evening stupor. Which is fine by me; I have no interest in your personal life patterns.
But for the sake of the bb contributors, would you care to elaborate?
Because I for one am willing to learn. Really.
How can it be that to hold your shares in GKP and reap the double dividend reward this year, is the same as selling at today’s prices pre dividend?
What do you mean?
Slig yes good point. It is odd how the panel beaters use shape shifting language. Black is white and vice versa. All a bit Alice in Wonderland.
no it isn't - just saying