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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: Just a follow up to my question about my dividend sustainability question for BDI. You say the dividend was cut; do you mean it was cut entirely (to zero)? My ticker and the Globe show an 8% dividend.

So, if:

1) there is no dividend, what source should I be using when looking at stocks to make sure I have the whole picture.

2) if the dividend is still 7.9%, is that sustainable?

Thanks again,

Rick
Read Answer Asked by Rick on April 20, 2017
Q: Hi

I am looking at Home Capital. The market cap is ± $1.5 billion dollars. The balance sheet indicates that Home capital has $1.2 billion in cash, $535 million available for sale securities and $2.6 billion in senior debt. I calculate the enterprise value at ± $2.365 billion.

The net income for the past twelve months stands at $247 million. The net income for the quarter ending December 31st was $50 million or $200 on an annual basis. Income and cash flow provided by operating activities for the year ending in 2016 were respectively $789 and $561 million. The cash flow looks unreasonably high. Is Home capital really generating that much cash ? If Home capital can earn $200 million in net income and $500 in cash flow for the current fiscal year, would you say that the company is selling at a discount?

Also, I am aware there is a cloud over the unexplained departure of the CEO, the alleged mortgage fraud and the mortgage rles have changed. Why is it that a publicly traded company do not have the obligation to explain why the CEO was fired?
Read Answer Asked by Gilles on April 19, 2017
Q: One report I read stated that to finance the acquisition PKI would issue 24 million shares to raise $660 million. That works out to $27.50 per share and the shares are currently trading near $31. In one of your earlier responses you also mentioned that shares would be issues at a discount. It would almost make sense for anyone like me who holds PKI to sell now into the market and buy back at the new issue price. Your thoughts?
Read Answer Asked by Steven on April 19, 2017