Whilst it does seem odd to pay dividends and then return to the...

Whilst it does seem odd to pay dividends and then return to the market for more cash, it is a strategy that has paid off.

Tne dividend was announced two days after the Sumba results (open at $0.27) which added fuel to the fire for the buyers and also potentially brought in investors with an income focus. All of this added to the momentum which led to the December rally to a price in the order $0.50.

As Hardmano said the Div cost the company $8.3 mil. They have then been able to sell shares at 0.40 instead of possibly 0.20-0.2. They would have raised half the cash ($17.5 mil instead of $35 mil) resulting in the company having an additional $9.16 mil for the same number of shares in circulation) More money for fewer shares which is good for the company and its current shareholders.

Obviously the Div wasn't the only or main driver of the share rally but don't underestimate the effect of paying dividends can have on market sentiment. Since HGO has been trading below fair value for so long, market sentiment was its biggest obstacle.