recover from dividend play, page-5

fadi
i held this one for a while and just couldnt get my head around it. for one, they went to the market for a big capital raising (feb or so), which they say they needed 'to improve the balance sheet and fund expansion', but then in the same year they pay it all back as dividends. effectively all the cash paid out was just the equity brought in by selling more shares and diluting EPS. it may be all legitimate, but it just left a sour taste, and i think the share price was appropriately punished. it made me wonder if they really were making the profits they claimed, or if it was just revaluations, and they needed the equity injection to maintain an unrealistic dividend. i mean if they really needed the cash why pay such a high dividend? something just seemed to be a miss...
happy hunting...