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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi,

According to Morningstar, ECI's dividend payout ratio is 184 %. If I am not mistaken, such a high ratio is often a sign that the dividend is unsustainable. According to your latest report and answers, ECI seems to be in good shape financially and well set up for future growth, even after the recent earnings miss. Could you please explain when and why such a high ratio should or should not be a source of worry?

Thank you very much!
Read Answer Asked by Pierre-Charles on May 23, 2017
Q: Further to my questions on Ten Peaks. I still don't understand how the convertible debenture effectively doubles the outstanding share count once exercised at $8.25. This is what is implied in he quarterly financials when calculating EPS on a basic and fully diluted basis. My calculation says a $15 million debenture converted at $8.25 equates to approx 1.8 million shares. The company now has approx 9 million shares outstanding. What am I missing?

Kenn
Read Answer Asked by Kenneth on May 18, 2017
Q: Scanning your latest research summary the 12.3% yield on NAL jumped off the page at me. Your B ranking doesn't put up a red flag but it also isn't in your portfolios. What is your outlook for this company. Will it continue sideways? Chances they will bring back the div? Possible short term buy at the $2 price with expectation it will pop back up to the recent $2.5 range for a short term profit? Or move on to better things realizing the 12% annualized div is gone and was a statistical hangover from better days...Any other yield traps on your list...BDI, ADN, CPX...
Read Answer Asked by Tom on May 17, 2017