although i hate to say it,the only real potential for nzo sp increase in the upcomming year is prc, wouldnt it be prudent to sell and load everything into prc?
Printable View
although i hate to say it,the only real potential for nzo sp increase in the upcomming year is prc, wouldnt it be prudent to sell and load everything into prc?
I will not sell. NZO owns 1/3rd of PRC-they will benefit from 1.increase in share price of prc(if that happens) 2. dividends from prc 3. coal contract from prc 4. Bonds to prc. One can argue that nzo is much more diversified than prc. We already know that both these companies have above average risks and hence one is not superior to the other. It is up to individual investor to decide.
I'm waiting for Roger I, Roger II, Roger III, Roger.... to talk down the share prices. Will it be a dollar? I love it!!
I don't worry much about the share prices low as I will have the 5 cent dividend to pay for the extravagance bills.
It is perfectly ok to talk down or up the share price. This is an open forum and people share views-positive or negative. Nothing wrong with that. It has nothing to do with one's size of trading accounts-I dont see the logic of the post.
As a small shareholder or a small share buyer, I don’t have the power to manipulate the share prices but I can catch the good situations to buy a little to please my share broker.
How big is my trading account?
It is shame to tell publicly, I might be being removed by my share broker from his clients' list because of my small and non-active trade account.
What I was implying was that I find it hard to believe you'd make much difference to the shareprice just by talking about it, unless you have some ST readers with big accounts acting on opinions expressed on here.
And anyway, the whole point of a forum is to hear different views. The day everyone agreed on what NZO is worth I'd probably do the opposite.
Roger, I may not have adequately conveyed just how popular the early 1980s O&G gas floats were. They were hugely oversubscribed. And when I say huge, I don't don't think I've seen anything like it since. The first day stags made profits of huge proportion. It was just a supply and demand thing. I can remember borrowing $10,000 (it seemed a lot of money then!) for the up-front application money knowing I'd get scalled back enormously - to a bare minimum as it proved, but you don't know that at the time. A lot of my frends and work-mates were doing the same thing. It doesn't surprise me if you now tell me the par 50 cent share went to $1.40 just after the float. It was a meaningless artifact - just the market madness at the time. Petro Taranaki and the others (was there a Great Southern Petroleum as well? Memeory is getting bad!) all did the same - stags made a killing. Then the first duster wells brought everyone back to earth.
Roger, I never bought NZO expecting a steadily increasing share price for the next 30 years. It's not like buying into a manufacturer's float, where a steady annual ROI can be expected once the plant has been built with the money raised. Minnow O&G explorers are about as raw an investment gamble as you can get. NZO has been the great survivor out of all those 1980's floats and, as I said in the previous comment, is now moving into that exciting producer territory. Big companies come out of that cohort. I've been around long enough to remember working in the stinking hot sun on the public wharf in Port Hedland in the 1970s, mixing dry cement and clay that was going offshore to an island I'd never heard of (Barrow Island) for a unknown two-cent company called Woodside. Look it up.
Ironically, if you want more regular shareholder value growth out of an oiler, you're now onto a winner. I reckon this is the time to be buying into NZO if that's your investment goal - the gamble component has diminshed significantly in the last few years.
I'm with Digger.
Hi Zito, turning it around somewhat: while I'm happy with how it's worked out, it wouldn't have been a case, either, of being "unhappy" if NZO had faded away. I knew the risks and was happy to be invested knowing what all the possible outcomes could be. I'd not have invested if I couldn't accept the "gamble".
Digger / Gambier33.
Hi Guys. Thanks for your comments. I guess I just wanted to debate another angle on the performance of the company, more so to shadow some perspective on the dividend payment's recently made. Lots of positive talk about recent divvy payments and the forthcoming one, but I just for the sake of playing Devil's advocate wanted to throw some light on how NZOG's share price performance has evolved over time.
I also want to continue to evolve the debate about dividends. When you get a convergance of the 3 main assets plays all bearing fruit, or hopefully about to do so in the case of PRC, it makes sense to me that shareholders share in the reward to a fair level, I would suggest a payout ratio of not less than 50% going forward. In the past, and I suppose many have shared this pain, i have found that talk of capital growth this or development that, is cheap, dividends on the other hand in the current environment of low interest rates are most enjoyable and if they were at a more rewarding level such that an investor might enjoy say an 8% return taking into account the value of imputation credits, the company may find it may get significantly more support from investors, a classic, win-win ?
It strikes me as rather odd that the team at NZOG have spent so much valuable management time reviewing what I would imagine have been a wide range of investment opportunities regarding utilization of Tui cash, yet at a time when the share price appears to be woefully under-performing havn't undertaken a share buy-back. Surely seeing as they appear to have rejected every other investment / almagamation / merger / takeover opportunity out there, perhaps their greatest opportunity, the one that would add the most net value per share is an on-market buy-back of their own shares which is staring at them right in the face. Sometimes the thing that would add most value to shareholders is the most obvious but perhaps they can't see the wood for the trees ?
Of course an extremly cynical view might be that share buy-back's don't grow the company per se, so there's no opportunity for management to boost their own remuneration as the company itself doesn't grow, but I couldn't possibly suggest such a cynical viewpoint would have any validity otherwise I'd really be in trouble...
I'm interested in what others think. Is it a good idea to instigate a significant on market share buy-back or should management as they suggest be looking overseas for growth oppotunities and we change the name to say Pacific Oil, Coal and Gas ?
NZO earnings cannot be expected to be regular over the coming years, so linking dividends to a fixed percentage of profits would be unhelpful. Returns would be irregular, and that would upset more people than it would please. You will note that there was a "loss" this year, so what such a formula suggests is no dividend!
PRC dividend contribution cannot be expected for a while yet, as PRC will want to pay down debt once (if) they become profitable. NZO return from PRC is likely to come in the form of a one off return on sale of the cornerstone stake. Return to NZO shareholders from this oneoff windfall profit is better handled via a capital return or special dividend, rather than distorting the annual dividend.
A share buyback is something I have favoured, because I believe it is in shareholders best interests that the share price be protected from the sort of extreme swings that we see on the somewhat illiquid NZX. The failure of the last summer exploration program has seen a heavy loading of the sell side, and the lack of buyers means that the shareprice has a downwards inertia that inevitably takes it well below fair value. Conversely, as another potentially rewarding drilling campaign gets under way the share price will probably get a bit overheated. These excessive swings lead to NZO being seen as a risky speculative share, when the reality is that there is a solid income stream behind the company now.
The Chairman has previously expressed the view that he does not feel it is right to buy shares back at a lower price than the company previously sold them at. I take the contrary view that it is better for the company to offer say 125c for a share bought at 150c than to leave a shareholder at the mercy of the illiquid market and having to accept perhaps 115c.
I don't think it is fair to say that the Board has rejected every opportunity out there. What I think they have done is to be patient and wait for an appropriate opportunity. We live in uncertain times, and it would have been very easy to waste shareholders wealth by leaping into something risky. There is no indication that they have given up the search. Recent announcements indicate quite the opposite.
Hi Unicorn,
Good post and well put. Several comments. First the Waikato Times has a big piece the other day saying DS was looking into a share buy back. Also your comment that the chairman feels he can not buy back shares at lower value than he prevoiusly bought them at might now be a bit outdated.I remember several years ago TR did say that not recently to my knowledge.And then at the time i wondered if it was a soft option as he did not like the idea anyways nor intended to act on it.
Frankly the CEO or Chairman can not and should not imlpy that a comment can stand for all time.As we all know the only perminate thing is change and things are sure changing around NZO. The idea needs looking at as buying back shares might well be the best investment on the NZX.
Cheers
Oh yes and at what rate should NZO offer for its shares in any buyback. I would say at the best and cheapest rate you can get them at just like any other buyer.The fact that they were purchased at a higher rate is all part of the sharemarket business. No one is required to sell but if you must then having NZO in the market is surely better than not having them in the market.
I think a bald share buyback is a waste of time and money as it will only buy up shares from a few disgruntled holders who have a better place to invest. (Read most long term investors in NZO) The problem is lack of support for the share price. It only takes maybe one person to short NZO when it has risen above recent levels and there is plenty of selling support to develop downwards share price momentum, to have potential buyers stand back, and trap the majority into holding an undervalued illiquid and stagnant share – while the shorter goes and uses his money elsewhere.
Unless there is some way of managing a buy back in a similar manner to the way shorters can manipulate share prices downwards all a buyback will achieve will be to allow some long term investors to quit the company. Any buyback has to be prepared to trade up and down, to use derivatives, to use margin tools – otherwise shorters always win. There has to be a potential downside for this negative activity and with such a small and activity transparent company it will take time to establish a realistic share price. There is a difference between providing share price support and a share buy back. The difference is in how the buyback trading is performed. What NZO needs is share price support not necessarily a buy back.
If this sort of “dirty” buyback isn’t legal then there are a lot of tools that are in use that shouldn’t be legal either. Why else have we had companies trading at less than their cash backing and with sound producing assets?
Share prices haven’t reflected underlying value while liquidity in the economy is so tight.
Totally agree with you Bilo.
Let's do some calculations for the actual gain from a share buyback @1.25:-
Assume the buyback is 5% of the total shares = 19.5m shares
19.5M shares x $1.25 = $24.5M
Two years ago, the company got $1.50 per share from NZOOD, totally paid out $0.15 for dividends, if the buyback price is @$1.25, it only end up with 10 cents per share - the total gain is $1.95M. Does it worth to spend $24.5M for a book profit gain of $1.95M?
Moreover, after buyback finished, could the company guarantee that the share prices would not again lower than the buyback price $1.25? If the share prices go lower again, will the company do a buy back again?
I don't know if its in a board's mandate to agonise about where the share price should be. Their focus should be on maximising medium-long term profit and allocating resources to where they will receive the best return. I think share buybacks should only be done in extraordinary circumstances; if a company has a surfeit of cash then they can give it to me as a shareholder and I can decide which shares I want to buy.. A dividend reduces my net cost of investment and makes a stagnant or undervalued share price a bit more palatable.
These are extraordinary circumstances!!!
Protecting the SP protects all stakeholders. The whole point of buying at sub $1.20 is to make sure any offer has to be for substantially more. Also If NZO state (but most likley do very little or nothing) that they will buy "up to" $50 million worth of shares on market at prices of $1.50 or below- that would stop any shorting activity sub $1.50 wouldn't it. U.S. companies do it all the time because it is a good idea!!
Hard to fathom the current SP & at reasonable volume- Cum a 5c dividend suggesting real price of $1.12. All brokers have a buy or accumulate & higher valuation. Oil up today, US$ down, General market rebound. PRC stronger.
Sentiment very bad for this stock unfortunately!
Early today John Keys was on morning report saying that South Canterbury Finance could use up all the monies set aside under the quarantee scheme and it looks like needing a lot more. As i got it 800 million was set aside but that was suppost to be for all companies under the scheme.It seems South Canterbury Finance[SCF]might need up to 1.8 billion. All i am hearing on business reports sounds like NZ has its own TOO BIG TO FAIL Problem.
General finanical problems world wide and SCF here in NZ are having a hugh effect on NZO. It remains a share you can sell to get some money even if you do not want to.This i think is dragging down NZO.This company has now fallen too much to be explained away by 4 dry wells only. So to tie this all in with our share buy back we have been talking about i stand by yesterdays comments but now NZO should not do anything until things settle down. If my assumption is correct this SCF things is too big a train to stand in front of and for now we should just let things take there coa-rse.
Thanks guys for your opinions. My opinon remains that the best buy and best use of some of its cash resource for NZOG out there at present is it own shares, thus boosting the net earnings per remaining share for all shareholders who decide not to sell.
I agree the SCF matter is a massive train wreck and the effect on the N.Z. economy will be profound. Having said that NZOG sells internationally priced commodities so is the potential share price performance over the coming days if the SCF matter goes completly pear shaped an interesting opportunity, especially cum a 5 cent divvy ?
The way I see it. NZO market cap is currently $455m
Made up of $80m cash, Pike $120m (30% of $400m), PPP $20m (15% of $130m), Pike loan $40m. Giving a total of $260m.
$445m less $260m = $195m
So what is left over.. well reserves in the ground of 13mmboe valued at $15 per boe (195m/13mmboe).
I don't see there being much upside here. Value hinges on rising oil price and pike being successful.
I could be wrong.
I am broadly in agreement with your numbers corporate but NZ$15 per barrel of producing asset 2P is a steal if you could buy it. Worth over a billion in time...13M * NZ(100-15) = 1,105M
And corporate PRC will be worth at least 3x the 120M (cost price)- all they have to do is prove that they can dig the coal out safely..
Unicorn you beat me to it.Best we informed the directors before any more money gets thrown away into KUPE. In fact i am so far behind the ape ball i thought KUPE was up and running and the cream was just starting. Seems i was completely wrong and it is all worthless.
Yeah Corporate, you'd better jump on board here too. Its going to be a wild ride but hey, all three projects are converging and just maybe if DS can read the tea leaves properly NZOG might see the merits in buying back its own shares.
Jump in mate, cum a 5 cent divvy and with the long term prospect for oil, where the world is running out, there must be medium term potential.
The upcoming dividend of 5c will cost nearly $20m.
Since the dividend was announced the shareprice has still dropped.
Using that $20m for a buy back instead might have had a better result.
I think they were just taking the Mickey, Corporate. And yes the share price dropped but was that a poor South Canterbury finance investor scrambling for cash, or currency dropping or CFD suppliers correcting things to pay the dividend. Or all of these plus ?
Mr Tommy, if we lived in two parallel worlds it would be interesting to see which approach was the better. If we were to go down the track you suggested and the buy back held the price at 1-20,it would be only a matter of seconds before it got posted here that it was a waist of money as no positive effect would be evident.Should have given a dividend would be the cry in that scenario. Frankly i think NZO will go down no matter what management do or don't do. Larger finanical issues are pulling it in an undersible direction,at least for now.
This SCF thing is a big problem. Like all govt nose ins it rapidly become an unfair system. Investers there get all their money back but none for investers that take a loss on the market . These are troubled finanical times and a lot of changes will have to take place.I would say if the govt is to continue 100% supporting funds investments that money will leave others areas where rish is soley carried by invester.
With this happening train wreck i do not think NZO should even look at a buy back now.The monies will have to be saved to get through this crazy time.
I have buckets of them( overweighted) but am feeling very tempted to buy at these levels. Cum dividend, regular cash flow, PRC approaching production etc. Keep having to walk away from my computer so I don't buy any.
someone mooted the idea earlier about selling NZO and buying PRC since NZO SP only hope now lies in PRC ,as there arent any other upcoming activities.
Will NZO go up in tandem of PRC sp, shud it rise?
yes, someone calculated a 1 cent rise for NZO every 3 cents PRC
Soon it looks like PRC may over take NZO's market cap
At this very moment Pike +3c NZOG - 1
I note NZO is in a down trend,while PRC would appear to be in an uptrend.I would have thought PRC going up would have driven up NZO.
Could some one please tell me how much of a PRC share does 1 NZO share own,as I am thinking of increasing my NZO holding rather than buying PRC which I do not own any shares in .
its looking a bit tad positive today.
In simple terms one NZO share owns about 30% of one PRC share.
NZO has about 390M shares on issue.
PRC has about 405M shares on issue.
NZO hold 30% of PRC.
There are also convertible notes that might mean an NZO share eventually ends up with a bit more of a PRC share.
Percy after the shares in lue of dividend from NZO there will be near enought to about the same number of pike shares as NZO. Near enough for simple cals here.Four things need to be considered IMHO.The 30% pike holding,the convertable notes and thirdly the right to purchase the coal not sold.Also NZO has been marked down serverly because of its imput into PIKE. The market is wrong with that one but NZO will not rerate until PIKE shows the investing public that NZO investment was wise. Given these four things i say NZO will go up somewhere between 60 to 70 % of the gain that PIKE makes. That should hold until all the downgrade of NZO investing in PIKE is reversed[my guess here is 1-60] After that if PIKE should continue to climb to 2 or3 dollars NZO gain will only be the direct effect of its holding in PIKE. About 35% to 40%
That is how i see it and i have no doubt thta pIKE will deliver regardless of the past so if we file this away somewhere we shall see how accurate it is with time .
Thank you digger.I respect your opinion and think you have given me sage advice.NZO have certainly strenghtened their position.I have NZO and was trying to figure out how to increase my exposure to PRC.I have looked at PRC and PRCOA and it seemed to me you have a free ride via NZO to Pike.It certainly looks more likely that Pike will start producing substancial amounts of coal shortly.I appriciate your reply.
For what it is worth, today's price action was a "key reversal" in TA speak. The open was a new low and lower than yesterday's low and the close was higher than yesterday's high.
This is a very powerful trend reversal signal - the stronger the trend, the stronger the signal.
Couldn't resist the temptation-added some more today.
Wise move RRR .
Did you notice the error in mondays nz herald-business page B15 has the dividend at just 5c with no imputation credits
The correct amount is-
APPNDX7: NZO: Appendix 7 - Dividend Details
NZO
31/08/2010
APPNDX7
REL: 0957 HRS New Zealand Oil and Gas Limited
APPNDX7: NZO: Appendix 7 - Dividend Details
Nature of event: Full Year Dividend
Description of the class of securities: New Zealand Oil & Gas Limited
Ordinary Shares
ISIN: NZNOGE0001S6
Monies associated with event
Amount per security: 0.05
Currency: NZD
Total Monies: $19,454,629
Supplementary dividend
Amount per security: $0.008824
Credits: $0.021429
Record date: 17 September, 2010
Payable date: 01 October, 2010
End CA:00199091 For:NZO Type:APPNDX7 Time:2010-08-31:09:57:39
yes last year i got imputation credits plus withholding tax,all good if you do ir3 for your tax return but i spose people who are on normal wages or superannuation cant claim the credits?im not sure but arent all dividends payed out with credits?
They can but no doubt many do not file a return. And as the deduction is greater than the marginal tax rate many have, they miss out on it.
You don't need me to verify your visions, YK - you and your trusty ruler are doing just fine! A single cent rise gives a break of the trendline.
There were clear Buy signals yesterday too. BigBob commented on the "Key Reversal" noting that this was "a very powerful trend reversal signal". The fact that this one was on well above average volume made it even stronger. Fast oscillators such as the RSI(10) shown here also triggered Buy signals yesterday.
http://i602.photobucket.com/albums/t...usPB/NZO92.gif
interesting according to Stockness Monster only 25 sales sofar this morning each nearly averaging $ 40000.00
My portfolio looks very unbalanced due to PRC/NZO.
Yes looks like NZO has been getting the feeling from shartrader. The shares certainly are a good deal at todays prices. Hope the directors have freed themselves from any obligation to buy at prices that previous cash issue were or share in lue. Since that time we had our chance to strike it rich and we now have no more claim on a given fixed price that the lotto loser have the day after. Buy best at market rates.Remember no one has to sell.
Great news - should put a flloor under the SP at $1.20
Agreed. I'd like to think my forthright comments on the matter might have had a very small part to play in this decision. Regardless one way or the other I think the quantum of the buy-back @ just over 2% of share capital spead over just on ten months is really little more than a token gesture. Let me unpack that a bit.
Something is better than nothing, I would conceed that but I would have thought something more meaningful at around 5-10% of share capital would be appropriate in the circumstances.
There could well be close to the 8.5m shares issued as share in lieu of dividend with the forthcoming dividend,, (does anyone know the approximate current participation rate ?), so quite why they would continue to issue shares at a discount to traded ex dividend VWAP and then buy them back later seems somewhat illogical, although I would conceed its gives individual shareholders more choice in that they can choose to participate in either unscaling or down-sizing their investment, through participation in either plan.
May I suggest the directors may want to consider suspending the shares in lieu of dividend scheme at such times in the future when they beleive the market is mis-pricing the company's shares. I know other companies who believe the market is profoundly mis-pricing their shares have chosen to do this from time to time and I would have thought this makes good common-sense, especiually if its done contemporaneously with the buy-back.
recon a 10cent divi would of driven the sp up faster than a $10mill give away.
i wonder if holders of less than a marketable quantity will be targeted/
M
recon the millions of 1cent part paid shares the staff get will be inline for the buy back.
Its an on market buy-back, only fully paid tradeable shares can be purchased at market price on or after 10 September 2010.
Itrs not a give-away as you've suggested and on market buy-backs have been used for many many years sucessfully by many companies looking to optimise returns to shareholders. I just wish the directors would really put their money where their mouth is and buy say 30 million back over the next year or so. Although I'm somewhat underwhelmed, the SP is up 5 cents this morning so the market likes the idea.
I wish they would kill this DRP !! mind you thats just me.
BB
I think I agree with your sentiment, it's not a huge buyback. But I guess the directors want to keep some cash for future developments. They would look pretty silly if they needed funds for some project and they had to have a rights issue shortly after a significant buyback!
i'd rather just know whats their plan, or do they have any real plan . rather than a buy back, it allows speculators/traders to come and manipulate the sp
It may not seem a large buy back in terms of shares on issue but IMO it IS large enough to protect the SP downside and also will be able to manuipulate the SP upwards on those many low volume days.
buy now and knowing the SP will be supported - then sell?
The collective managements 200 hrs. expertise has just been increased by probably 2 days, to 200 years and 2 days this year, being the time it took to work this brilliant scheme out, in the perennial lead up to the AGM it may just stop the price to fall as usual after.
SP up 4 cents today, I'd suggest the floor has been effectivly set at $1.20 cum divvy, with no apparent downside, that only leaves upside, a one sided bet ? Couldn't help myself and had another top-up purchase today, actions speak louder than words....
I wonder if NZX Surveillance will take a look at what date the NZO Board passed the resolution to enter into the buy-back arrangement, who was buying the heavy volumes late last week, and was it through any particular Broker......
I don't mind admitting I have been topping up recently -last on 26 august at 1.19 .
Had to suffer the Wrath of my wife when she found it on my margin lending account a few days later otherwise would have been topping up further last week .
Simply you dont have to be on the nzo board to workout how undervalued this share is .
I will be at the AGM to congratulate the board as to how well they have steered this company through difficult times .
The future looks very profitable to me .
Must meet up with you Fish for the first time. Still considering your idea that we have a remit from the AGM to ban selling PIKE.The rosy future you see for NZO will get a quick shot in the arm if PIKE is sold but just a yeaR OR SO AFTER IT WILL BE SEEN AS A GIVE AWAY.One of mother natures earthquakes is about the only big problem standing in the way of a great future for that mine.Seems a shame to even think about selling after soooo long in getting developing under way with 20 to 40 years in front of it.
The buy back is interesting.Will certainly allow small holders to get out at a better deal than otherwise and give the holding NZO investers the benifit of the cheap buys.Watch this space.
I do recall that Tap Oil had a heap of cash and embarked upon a very expensive share buyback , cancel script.
This burnt an absolete heap of cash and today the sp is lower than what Tap Oil paid.
NZ should take care to NOT THROW TO MUCH MONEY AT IT
The buyback has helped sp by 5c today.
I am on the record as wanting to buy 30,000 nzo because shares were cheap at about 90c au [and the divi]
Am now leaning towards not selling 280,000 kas @ 11c to achieve that, instead will hang onto kas as they have a heap of upside.
If I miss out on divi and end up paying aud$1.20 for nzo then so be it - but I might only have to sell 200,000 kas as well.
Patience is required.
M
woow, what a bold move from nzog....this will really get the shares going.
Really is this the best they can come up with? what about using the money to find oil?
What a waste
Does seem a desperate move
So they take in heaps of yoor money at $1.50 ... well done guys giving them this .... and then they use some of this to buy their own shares back .... seems like you guys would have been better off not giving them the $1.50 and saving it for a rainy day and buying sahres at $1.20 yourself .... but it has given NZO the warm fuzzies in holding so much cash eh
Totally disagree - It is about an insurance policy that will keep unwanted large predators away. It also means that the pie gets bigger for current shareholders who keep the same stake. Guess you were short before the announcement as I struggle to see any other reason to want NZO to trade at NAV with PRC only just producing
Winner69 you must be having a bad reasoning day as i can not remember reading any of your previous posts and wondering what pile of sand IS HIS HEAD STUCK IN. I bought heads at 1-50 and last year shares in lue at 1-60 but i do not in any way now blame NZO if they can pick up shares at 1-20 and cancell them. It is a different world. We had 4 chances to strick it rich and the world finanical system is not sure if it is coming or going.All that does leave NZO in a new ball game and it has to be picked up from here and carried forward. In hindsight you are however correct in saying we at 1-50 and 1-60 would have been better off not taking up the offer,and it hurts.
I fully support NZO putting this small floor under the price and moving on. Lets talk about the future instead of just being wise about the past,or can you point to where last year at this time you said exactally these comments.
The future lies now with our intension with our PIKE holding as well as drilling and acquistions.What do we do here and i mean before the event not that perfect hindsight stuff that we all get a year after all the dust has settled.
Thank you Digger for another intelligent response to some confused thinking. Like rust, it seems the 'What if...' brigade never sleeps. .
Agree about the desperate move..especially to cancel the bought back shares...why not just keep them as treasury stock, at least it is classed as an asset and keeps NZO warchest at the optimum level.
Yep they theoretically could gain 25c profit out of their faithful shareholders if they buy up now......but the tide has just changed...I think NZO share price just needed an excuse to change direction and any excuse will do. TA wise the share is a buy... the downtrend rot ended (touch wood..**) on the 2 Sept with the gap up after the engulfing pattern the day before + other indicators...Hmmm....Did TA pick up insider news leak activity before the 6 Sept news release to shareholders or was it just coincidence?.
Also the shareprice gapped up to break the resistance /now support at $1.19 on the same day (2 sept).
If NZO develops an uptrend, NZO management may have to buy quickly and some how try not to artificially push the price up further or it could turn out to be another expensive and unnecessary depletion of its warchest if they are still buying in at say $1.80.
**The last time NZO broke the downtrend line was on 14/15 June ...but sadly it was a bull trap...
Can't see them buying back any if the price rises to a level they are happy with.
Their statement states "the intention to buy-back up to 8,500,000 shares" , so no compulsion to buy any at all.
NZO SP has a fair wind in it's sails now. Share buy-back / up-coming divie / PRC ramping up to full production.
What's with the use of the term "THEY"? As shareholders WE have a share in this company and proportional voting rights to elect OUR representatives to the board. I am realistic, as a tiny shareholder, of my ability to have any say at all but I do find the "them and us'' nature of some posts irrational. We didn't give THEM anything. We invested in a company. If we don't like how OUR representatives on the board govern the company or how OUR managers perform, then we sell our shares or choose not to invest in the first place.
Yes i too have reservations spending 8Mil. to keep the SP at around $ 1,20 i have no fear of a take over, as long the co. is under the stewardship of T.R let the SP rise & fall.
Should the NZO holding in PRC be worth 200-250 mil. or more-- Sell, but first get some lessons and learn what to do with it.
Touch a raw nerve or something
OK - so you INVESTED in YOUR company by handing over $1.50 a share ... presumably for YOUR company to invest in something to create great wealth. Now YOUR elected representatives on the Board agree to invests that money by buying back, maybe not YOUR shares, but YOUR FELLOW SHAREHOLDERS shares.
Still doesn't make too much sense to me
The 'market' will decide whether it makes sense or not but I guess that doesn't mean that the market is rational.
No raw nerve. Never invested at $1.50.
Just being a p***k and making point about "them and us" point of view that I don't agree with as a philosophy (except with GPG!!!!). Not meant as personal attack.
Hello all, when is ex dividend date for nzo? assuming there is div this year. Thanks
http://www.nzog.net/ tells you
What do people think of the new Morningstar report out? I see it's copyright 2009, that might explain why it seems so out of date.
Whew, and sharebrokers wonder why the public are losing interest in investing in shares.
My old dad used to say, do the opposite of what financial advisors say and you won't go far wrong.
5 cps div, thats good enough for me.
NZO is listed on Direct Broking as XD
Isnt the ex date for the dividend friday 17 Sept ?
NZX: Change to ex-rec period
19 August 2010. NZX advises that due to the change to the "ex-rec" period which becomes effective following the cutover to the new settlement system, the Ex Date will be changing for all corporate actions with a Record Date
that falls on or after 1 September 2010.
The change to the "ex-rec" regime provides that the Ex Date will be two Business Days before the Record Date (three full trading days before "books close"). This removes the requirement to adjust trades.
NZO sp 1.26
KS ,this new date puts the determination of weighted average price for investers taking up the DRP in some question.Here is what the NZO report says.
"The number of shares will be calculated at a 2.5% discount to the weighted average sale price for shares sold on each of the first five business days immediately following the dividend record date."
Has the dividend record date now changed to start today. I had assumed it would be calculated on the weighted average of all next week. That is from 20th to 24th/
How do you and others see it?
im still trying to figure out why the exercise price of the millions of new 1cent shares given to staff ....... to be cashed in sept 2012 is only $1.44.
does that mean in 2012 they expect the sp to in the $1.40 to $1.50 range or maybe the $2.00 range and give a profit of 60cents x 1 million shares.
either way...... management has the potential to reap 100s of thousands of dollars from 1 cent shares or just try and achieve $1.44 in 2 years time.
in the meantime......... share holders get a 5cent divi and have to pay full price today for a share that management values at $1.44 in 2 years.
my question is.......... where is the incentive for the shareholders?
why back a co for a $1.44 in 2 years, or see management cash in big time if $2 a share is achieved......... at the shareholders risk and expense.
dont seem right to me......... but as i said before, i out very shortly.
FPA is looking very promising now......... 17 year invention coming on line.
i wonder how much influence TR still has on the board of NZO and PRC.
he has never like giving to the shareholders that supported him.