Sorry - but it is the new reality for LPH. Any significant investors (who are the only ones that will move the pps), want to be "shown the money". "Get paid while you wait" is what they want, and is the new rallying cry by talking heads near and far. Without that, we could be stumbling around in the red for years here, while the global economy goes through the dry heaves.
What might happen if LPH declared a decent divi??
1) All the outstanding warrants would convert and add $25MM to the already healthy cash flow.
2) Institutional investors would start looking more closely, and no doubt some would jump in.
3) All the bashers and kooks would disappear, knowing that they lost the war.
4) The manipulators and MM's who seem to want to hold this underwater indefinitely would no longer be a factor.
5) The pps would immediately start pushing towards a realistic valuation.
6) Future expansion would be greeted with open arms and move faster and more efficiently, as capital would be more easily attracted.
All the other ideas to move the pps are tenuous at best because they wont deliver new investors. They might slowly filter in as we get the company to embrace certain steps, but a divi would trump all these and get the desired result - immediately.
Want to jump on a bandwagon that will actually get immediate results?? Continue to push LPH mgmnt and BOD for a divi at every opportunity.
cb- Great post. While a dividend is a great idea it's not going to happen until China changes it's policy. If the company generated a portion of it's earnings outside of China, there would be a possibiity of it occurring. China will not allow the money to leave the country at this time.
For details, if you're interested and have a mind to, go to the chop message board. An excellent poster, Tempeworker, gave a detailed explanation of the difficulty of paying a dividend for thesae companies. Having said that, I acknowledge that deer just implemented a dividend policy, so while it may be difficult it's not impossible.
Thanks - checked out those threads over there on CHOP. Interesting.
So my first thought is if no divi here, then this should be listed on a Chinese exchange, so they can pay them there, thus driving up the pps, and allowing us to realize gains.
But then I start wondering about these VIE's with BVI (or wherever) shells, where shareholders have access only to profits but not assets. Well that seems entirely illogical. They can access our capital markets, but we can't access the assets OR the profits??
As Lupisv asks "are we sitting at the same table"??
Someone (Toups??) who knows about this stuff needs to address this, and answer some serious questions about just exactly what it is all us LPH investors are waiting to "share in".
which is why I also hold a position in AERL. Much easier in Macau to get AERL's dividend money issued to investors. I know, I already received the first divi. Hopefully this is but one of many financial reforms that China will someday implement.
Yes you are all correct. Announce the divi shortly after the acquisition. Make it $.06/share quarterly , pay for it with the warrants that convert (no extra cash required), and when that runs out, Haujie will be providing another $30MM to the bottom line! Seems too logical almost.
Can't issue a divy when you're using all your cash for the acquisition. Afterwards ? We'll get a divy, have the acquisition under our belts and everyone will be pumping like mad.