[QUOTE=Sayce;354873]As a long time share holder in NZO I can only agree that the market is correct in its current appraisal of the company. The list of negatives is long. For example in the last two years there has been a succession of dry wells, the share buy back was never likely to be a substitute for value adding activity, the company is associated with a tragic coal mining venture, there has been a reserve’s downgrade for Tui and on top of all this, the Board has declared that there will be no dividend in the immediate future. No wonder the share price is low.
There are some immediate things that the company can do to alleviate this market rating. The most obvious of these is an announcement that the payment of dividends will be restored. End Quote
Hi Sayce,
Your list of negatives for NZO is correct. You are not correct in saying that the board has declared there will be no dividend. After the PIKE tragedy and a 99 million capital right off the board said it had no intension to pay a dividend.That is different from the way you put it. At the end of each August the board sits and decideds what it will do . That should be this coming week if past years are any indication.
I like the way you general put things but i would add as i have many time before that if the board does decide to not have a dividend its absance will hide the true value of the companys assets. Kupe in itself should support a dividend.In fact if i owned all the company i would not only give a div but declare an intension to put aside some of Kupes future income to be funded back to shareholders. This i have said many times before,but it is exactally what the market is looking for in these very uncertain times.NZO has had the negatives but we should not now hide the positives.
We will know what the board thinks by end of this month.
Cheers