sysy

thanks for update on the q result :)

JobinWood

What do you think about them giving dividends versus trying to invest in more coal mines, since they currently have the least coal proven and probable reserves amongst the 3 coal sgx-listed companies?

Would you rather they give out dividends now and share price stagnate and after this mine is empty they have no more reserves?

JobinWood

Reply to @fanoflynch : 1. Company has gotten 300m at 8% MTN (24m a year of interest my friend) and they are giving out dividends instead of reinvesting the dividends to do the mine acquisitions they purported for the MTN (according to you). What does it say about the company?
2. Whats your point on the CEO? He owns 10m shares, then? That is slightly below 1%. The question is not whether it is in his interest, the question is whether are they able to use the funds optimally?
3. Back to the question on valuation - they have low PE because of their low reserves, and its a vicious cycle. As time pass by, if they cant replenish their 2P, p/e falls in relation
4. Share price may decline to relation to lower p/e, but may be supported by dividends. Open ended question with a number of possibilities
5. We need to be worried, because markets are forward looking. What they are not doing now for the future will be reflected in today's share price

I was trying to look for good reasons to invest in Geo, but i avoided it because I saw less positive things than negative things at this valuation level. And I am not trying to push this stock down or banish this stock. Im just seeing the other side of the coin.

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shawntam

any idea will the dividend be paid?

fanoflynch

Reply to @shawntam : Yes it will

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