Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (48831)	7/19/2012 10:32:24 AM
From: E_K_S	Read Replies (1) \| Respond to of 78774

Jurgis - All good points. I too am a bit concerned w/ all that CF being paid out but at least they are not exceeding their CF . . yet :). The prudent thing for them to do is to cut their dividend and pay it quarterly rather than monthly. I expected that with ERF and thought that their dividend cut was factored into their stock price when I bought shares around $18.00/share. Then ERF made their "expected" dividend cut and the stock dropped 25% to $13.00/share. I hope that is not the case w/ Ag Growth. ERF was borrowing their money to pay the dividend too. This is not the case w/ Ag Growth. I have some low ball orders in to buy more Ag Growth if that is the case (ie cut dividend to preserve retained earnings and build up cash reserves). I also expect a drop in U.S. and/or Canadian orders as a result of the drought. Managers should see this as well as shareholders. But since the stock is so thinly traded, one could see another price drop on such news which for me is just another buying opportunity. Thank's for your views. Still some pretty impressive ROE & ROA numbers for a simple grain equipment manufacturer. Interesting that Ag Growth maintains the same profit margin (ie 8%) as Deere & Company (DE) . For me, it's definitely one to have a few shares in the portfolio to add to my AG basket. EKS