Investors selling out as no dividends in future.
u ready at 65c?
Do be careful as it could be a ploy by Zeta to drive the sp to 35c and then, takeover to strip the company clean?
In which case, wait at 30c.
:D
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Not sure if people own this is a yield stock, the change in dividend policy is not due to inability to pay its just not efficient for shareholders as dividends have no imputation credits.
New Zealand Oil & Gas was the worst performer on the benchmark index falling 2.8 percent to 70 cents. The listed energy explorer will return about $60 million to shareholders saying cash on hand will be more than it needs to grow its business as production ramps up at the Tui field. The company paid a final dividend of 3 cents a share in September but doesn't expect to declare any more dividends "in the near term" because it is deducting exploration expenses from its tax bill and isn't accruing imputation credits.
"Initially the price went up on the back of directors were considering a 15 cent capital return to shareholders, however the negative side has really taken over, being they don't intend to pay any more dividends in the foreseeable future," Williamson said. "Investors were actually in New Zealand Oil & Gas for the income because they were paying reasonable dividends."
http://www.nbr.co.nz/article/market-...dend-bd-165411
Plus Can they take a hint????
[ Example ]
Bathurst Resources [NZX: BRL], which was last year granted consent for an open-cast mine on the West Coast's Denniston Plateau, has trimmed down its board size as it clamps down on costs while waiting for the global coking coal market to improve.
whilst on this theme I understand the directors will have lots of partially paid shares.
A return of capital would make these less likely to reach their exercise price.
No doubt they will have some kind of provision to circumvent this.
Anybody know?
I guess the exercise price will be adjusted accordingly - in any case they'll have to work for it (and shareholders) if they ever
want to get any joy out of those partially paid shares - the lowest exercise price is about 95c.
Incidentally, I noted in the full year accounts page 22 section 9(c) that Available Imputation Credits on 30 June 14 were 1.1m - not enough for meaningful imputation this time. What I didn't find were the expenses/losses carried forward which reduce the current year's tax bill. Perhaps someone could point
out where to find those numbers in the accounts so we can get a feeling for when imputation credits will be accrued again.
It's a nonsense for any company to stop paying dividends due to lack of imputation credits - it does not really matter whether the company pays tax or the shareholders.
What does make sense is when a company is sitting on tax losses - in which case the tax losses need to be utilised before a company start paying dividends.
Wonder how a suspended dividend will be taken by cornerstone holders like ACC who will stop recieving an income.
Capital returns invariably result in a lowering of the share price equal or greater than the return amount over the long term - all things being equal. Share price will spike up just prior but will still settle down. So with no dividends imputed or otherwise as Balance correctly states, your total return is severely reduced. Wake up NZO directors - you are clutching at straws!