Quote - "If it doesn't pay a dividend it has a value of nothing."
This is my first post on hotcopper since I normally try to refrain myself from posting any message/opinion.
This statement is so incorrect, it boggles the mind that someone could post it.
Let me set you an example: If a company achieve their first significant profit, but chooses not to pay a dividend to their shareholders (as they are accumulating their working capital for aggressive growth strategy). Would that mean the company's value is ZERO??
I am a long term holder of LUM and I don't claim to make a comment on the fair value of its share price. But to say a company has a value of ZERO if it has no dividend is just ridiculous.
The next time that you subscribed for an IPO for a developing company, you should ask the directors if you can get the shares for free since most of them don't pay any dividends.
LUM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
