Im in the US, is this a good buy at $3. I see it's going to pay a divie. What's spyglass? how will this work? I own shares of PBA. I just don't understand what I've read on this. I like to buy for a monthly divie, can anyone explain this? Thanks Katie!!
hi - if the merger goes thru ( expected on 2/19/13) PACEF shareholders will receive 1.3 shares of spyglass for every share of PACEF held . mgmt has promised to pay .03 a spyglass share a month dividend for next 6 months / this is around 15 % a year div .
At the current price of PACEF at 2.74/ share, your adjusted cost per share of the new stock will be $2.74/1.3 or $2.11/ share. With a dividend of $0.36/year, that is a dividend yield of l7% per share. That is a nifty yield, and appears sustainable.