SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Calian Technology a Company with infinite growth potential

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Robert Bachynski who wrote (59)9/15/1998 9:20:00 PM
From: John Sladek  Read Replies (1) of 132
 
Robert,

I would doubt that there will be much buying of this stock as a dividend play - it is just too illiquid.

Also this is not a regular dividend - it is a one time shot. Apparently the BOD will consider issuing future dividends as financial conditions allow. Given that the amount of the dividend on a per share basis exceeds the annual earnings of the company, it is not sustainable at this level.

Still, it is partly a good sign in that it points to the possibility of the company establishing a regular dividend at some point in the future (maybe within the next few years?) if their earnings become more stable and predictable. On the negative side, it suggests that the company does not have any idea of where they can invest the cash to generate a good ROI for the shareholders.

Regards,
John Sladek
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext