I'm pretty pleased today, nice cheque arriving soon but tell me where is Duncan to spoil the party? Maybe he is waiting for the chart to tell him when to reply!
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I'm pretty pleased today, nice cheque arriving soon but tell me where is Duncan to spoil the party? Maybe he is waiting for the chart to tell him when to reply!
Of course with the blue eyed brigade!
Well, I guess Mr Market has shown thus-far that he is not going to fully value NZO stock, so if the Co. bought back shares Mr Market might not automatically upgrade the SP pro-rata. However, if NZO starts to regularly pay a ~$10c per annum (or higher) dividend, that can be can be calculated at a certain tangible return-rate by mum and dad investors who might then invest in NZO at what ever SP gives them a better return than putting their funds in the bank. Sure, it's more risky, but hey look at the mums and dads who got burned chasing an extra 1% through the finance companies. Seems like a reasonable strategy to me for building the SP.
Fair enough but I suggest there are already plenty so called mum & dads in the stock...
Was not expecting a dividend this early in the production piece. For it to be fully imputed must mean that the company has used up all tax losses and has paid or will be paying the tax on the monies passed on to the shareholders. Again a very pleasant suprise and sooner than i thought.
Arjay has been pushing for a dividend for some time now to cement in a constant upward SP rise. Investers just like to get something back.
My monies will arrive just in time. My wife and i are building a new home overlooking about 2/3 of the parched waikato. We are going all hippy and will not be on the national grid. Power will be from solar ,wind and back up generator.Will post more on this later as would go too far off NZO by discussing it now. Anyways that dividend will go some way to pay off a few hands that are stuck out. Dispite this windfall i will continue to go around clum faced when all the builders and associates are around as if they know you have just received a bit of money,somehow the money is rightfully theirs.
The best part of this div is that it looks like it will be ongoing and for years into the future.
Regretably in NZo recent history i have only been able to talk two investers into NOG. Both sold out in the last three months being sick of hearing about hanging on until all three projects are producing.I had not expected one project to be good enought to support the other two as well as pass on a dividend. Just shows how enormously successful TUI is.
Well done to all the long term holders and NZO management.
And Kupe could be bigger than Tui!
I would hate to spoil the party guys you deserve better than you have been getting from this company for a very long time. The shares went up 5c on the announcement of a 5c fully imputed dividend. Whoopee doo they drop 5c when its paid. It would have made more sense to have a buy back on market with a share cancelation. That way the sp would have risen higher faster. The options will be unlikely to be excercised, and if they are will hold the sp at that level with the dilution effect. Fingers crossed for you will be away for some time but will be back in time to see who is left holding the parcel. I suppose the brain dead will love this dividend, but to me coming from a prospecting company at this stage in the play its a stupid move. When i get back i hope you can tell me how wrong i got it, but until then good luck guys keep that stop loss in play. Macdunk
Blocky is very happy with todays direction NOG is taking, maybe Mrs Blocky will ease up on the "you should have sold when ...."
I grabbed a few more options on the strength of it all today,
Oil explorers must pay a royalty to government (which counts as a tax).
This can not be offset against previously accrued losses. Those losses can however
be used up slowly to avoid paying the full company tax rate.
The regime is as follows:
1. an ad valorem royalty (AVR), which applies at a rate of 5% of gross revenue from the sale of petroleum; or
2. an accounting profit royalty (APR), which applies at a rate of 20% of net revenues from the sale of petroleum, after deducting production expenses incurred under the same, or a related, permit.
Permit holders are required to pay the higher of the two royalties in any year (but not both)
Since the costs of producing the oil are so low (<$10/barrel) I assume the second regime operates here
and NZO pays 20% tax on the net oil revenue. That's where our imputation credits come from.
Previous years losses and unrelated permit expenses and writeoffs can then be used to offset
the additional tax a company would have to pay on its net profit (33% minus the royalties already
paid). It will take a few years to use the accrued losses up, I suppose.