re: 20 cents special dividend
I find perplexing the market's flat response to the announcement of MRE's special 20 cent dividend yesterday.
The stock has continued to trade in its normal pessimistic range today when you would think the dividend would have given it a fillip. I know it has to be approved by shareholders and ASIC but these are pretty much formalities. As such, MRE today is worth 20 cents more than yesterday for those intending to hold yet the SP is flat to down.
I know a host of other factors are in play here, including concerns over the company's ability to sustain production. On this score though, I notice MRE is in Investorweb's Top 10 buys as they believe the worst is behind and the P/E ratio relative to its peers makes it very attractive.
But my point is that any perceived negatives did not prevent the SP hitting $2.29 pre-announcement. Today it sits around $2.20 despite the extra 20 cents of value. Will we see a delayed reaction upwards once the dividend is approved? Or is this stock - as Aflatoon said - a victim of the instos burnt in an overpriced capital raising?
A renewed upswing in the nickel price may be what's needed to galvanize things. I hold.
MRE Price at posting:
0.0¢ Sentiment: None Disclosure: Held
