Q: Can you give me an opinion on Tier One Capital Limited Partnership.
I note the dividend is very high and the market cap very small Would you consider it for an investment to produce a solid ongoing dividend?
Thanks
Elliott
I note the dividend is very high and the market cap very small Would you consider it for an investment to produce a solid ongoing dividend?
Thanks
Elliott
5i Research Answer:
We really do not follow $12M market cap companies. Risks are extreme, and trading liquidity very weak. TLP has had revenue, but it is exceptionally volatile. Net income varies widely. The dividend though has been paid for at least ten years. But the payout ratio is over 100%. Thus, capital has been eroded. The stock was $8 in 2015, and is now below $2.75. Even with the very high dividend, investors have lost money on a net basis. We would not endorse this in any way.