The Residential Real Estate Post-Crash Index-Moderated Message Board

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Strategies & Market Trends : The Residential Real Estate Post-Crash Index-Moderated

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To: hdl who wrote (86923)	3/11/2013 7:46:10 AM
From: Pogeu Mahone	Read Replies (1) of 119361

GNE You would consider exchanging them if you want the dividend payout which amounts to $0.60+ per year, or about 8%. Downside is your ceiling is limited to something like 8.50 a share if/when they buy them back after 3 years. So you are betting the price will be below 8.50 in 3 years. Factor in another couple bucks in dividend payouts, and that is your maximum payout. Good if you are interested in quarterly payouts. Another downside is that there is more volatility because far less shares trade hands each day. The dividend can go higher though since it is tied to the revenue generated by GoGas on the east coast, which has been expanding into new territories for a number of quarters in a row. The more customers they get, the higher the potential the dividend could grow to. You are either betting the oil shale pans out, or you want the "guarantee" of the dividend. When the guy that controls the majority of shares says from day 1 he will not be exchanging any of his shares, that was a strong case to not make the switch

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