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Mr K etall
They have f****d is all up right god and prompt, Ten years waiting on. Billion ,$ promise payback to share holders, well all that has happened is I have half the amount of share's I started with. Explain that.
One really ****** off holder.
Keeping this at a high level. ALL stocks drop by the issued dividend amount.
Your banking on the stock to recover to the total price of purchase in order
to relies the gain or dividend amount.
In cases where the total stock price will drop to much, companies use an accounting treatment called shares consolidation. This means they give you cash dividend, but your currently holding are also reduced by this amount. (reducing number of shares, and value).
In the end in both cases you are banking on the share price to rise to the total cost of purchase in order to relies your ROI. The best example I can give is below.
I did an assessment, and to invest this time around (I basically) loaned CNE.l some money
and if the share price return to my breakeven point in 12 months, I would have received
1,540 GBP for the 12 month period of time.
If the stock takes longer to recover then the monthly figures gets adjusted accordingly. Being that this is a long term hold and knowing:
- The BOD is big on dividends return to shareholders
- Q4 will bring another dividend (potentially)
- 25 mil in stock buy back (to increase the price of stock over time)
This is a good long term bet. Where else can you get a 52% ROI ?
Just to mention, Aviva and a couple of other companies did this.
The fundamentals are all the same. The company will give you free
money without equaling out your current position. Then time will be
your bet friend.
I know the BOD did stupid things like:
- Tinder offering to return Indian award (not tangible to shareholders)
- 2 merger attempts
- Not aggressively pursuing dividends in order give shareholders tangible return
That is why they are gone. I read all of the RNS and white papers, and the new BOD
has made it clear that they will operate differently...... or else they will be gone also.
I dont follow you Kioto.... Why would the stock go back up to the same MCAP as pre dividend? The company has 0 cash flow positive assets, therefore no way of creating this type of value, especially if any free cash is to be returned as future dividends.
This is not a 51% ROI.... all else equal the dividend will make or lose you no money, it will only move your money around.
Hard to believe but Barclay's still haven't got the corporate action complete !
They finally got the shareholding altered to the right number of shares mid afternoon, but even now there are no buy or sell buttons on the stock.
Plus if you do a search of the CNE code it doesn't appear now at all.
LOTM
It appears your assumption is that CNE will only trade side ways or downwards. I am banking
on the stock going up in price as business's tend to do.
From a historical perspective, I was a CNE holder during the last dividend and consolidation about a 1.5 year ago. This exact same thing happened, and in roughly 14 months the stock rebounded and increased to my breakeven point of 2.40 GPB per share. I sold because I hated the old management. (not a fan of holding on to cash and not giving to shareholders... the tender was a stupid idea).
I think this stock has potential because:
- New BOD - with focus on returning excess profit to shareholders (Q4)
- 25 mil in share by back (will slowly help increase the price)
- internal cost cutting
You need to read the RNS and white papers. I think all the focus of the new BOD will
help the price of the stock increase overtime and we will see natural stock increase.
Revenues - Operating cost = P or L
If you dont see significant progress in the share price increasing there are always other
finance tactics you can deploy. But the premise remains in 12 months time the stock will
increase to your breakeven point, if not the ROI decreases slightly, by every month you hold.
But I personally think they are doing all of these actions in order to sell off in the future, and
then you would potentially get an even greater ROI.
I’ve read all the information. And this is very different to post Senegal dividend (the India money was returned after that).
This time the company has the Senegal payment and North Sea payments, which I agree will increase the share price a bit, but I think they are already priced in (and I think the Senegal payment IS basically the £100mi additional divi payment).
Look at the Egypt operations, they require a huge amount of CAPEX, they are non operated, they are not making any money, the countries financial condition is deteriorating (I highly recommend investigating that), I predict the receivable position to worsted, look at all companies who have managed to improve it, to do so they needed massive increases in investment and/or large bonus payments be made to Egypt.
Mr K that is a well considered response, logical and balanced but....
The psychology of investing is such that I view CNE as an enormous Swizz which promised so much a few years ago and delivered so little. I never wanted to be invested in Egypt and still do not understand quite how the Board got away with that idiotic move. I suppose I should just sell up?
Remember, the old BODs are out due to a lack of performance and bad decisions. The RNS and white papers have the new BOD and CEO acknowledge this. They will take lessons learned and make different (hopefully better) decisions.
I say, sit tight and lets look at the quarterly numbers and financial performance,
then you can make an informed decision. Just remember below. Also the RNS and white
papers clearly indicate that the company will be positioned on the better side of the equation.
Thank god for MBA's and business school!
Revenue - Operating Cost = P or L
With this fall in SP, at least if reinvesting divi's we'll be buying shares at a lower price!