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Enerplus Corporation Message Board

  • davedufresne80 davedufresne80 May 20, 2012 9:50 AM Flag

    Feel kind of stupid asking this but...

    Why did you all vote for the share dividend reinvestment program? I'm assuming ERF is just going to dilute and make more shares to provide for this? What's the advantage? Is the company just going to get more and more diluted every month.

    On another note, its good to see all the insider buying.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • You're not a numbskull. Its a good question as its not talked about often and for ERF investors... it can be completely new.

      Companies can have reserves of shares of their own stock and not all of them are sold to the public at the IPO or secondaries. The more sold to the public the better obviously or they don't raise as much money. These held shares cover employee stock option plans and investor DRIPs.

      When a company does a share buyback they can keep some of those they buy for these purposes also.

      For the individual investor it will matter more what your investing strategy is for ERF. If you want the income take the cash. If you want to grow your position and ownership of the company then take the shares as it will compond and the next payment will be bigger. The drawback obviously is if the share price drops then those DRIP shares also lose value.

      Hopefully that helps.

    • dans782@att.net dans782 May 22, 2012 12:33 PM Flag

      Taxes guy taxes. READ

    • I believe that its been stated that the shares will NOT be coming from the open market.
      BTW: Regardlwess of where the shares come from why would you turn down a 5% discount?

    • This is replacing their existing DRIP plan that was for Canadian investors only.
      Now investors of other companies can do it.

      This isnt dillution I really wish people would stop with that. Why? Because if people wanted to get more shares with their dividend they would just go out and buy it. Or have their broker do it like Sharebuilder or Fidelity that let you do it through the software.

      All this does is make it easier and it gives more choices to the investor.

    • What you say is partial correct however the advantages of receiving stock versus cash has consequences that can be a plus or a minus realtive to taxes. Here you have to talk to an accountant or your broker.

      • 1 Reply to richardx58
      • Why not just discontinue the dividend and at least keep the amount of shares the same and hope for share appreciation. I'm not getting this can anyone help....?

        here are the trades

        http://canadianinsider.com/node/7?menu_tickersearch=erf


        May 18/12

        May 17/12

        Daniels, Raymond John

        Direct Ownership

        Common Shares

        10 - Acquisition in the public market

        1,000

        $14.12




        May 18/12

        May 17/12

        Daniels, Raymond John

        Direct Ownership

        Common Shares

        10 - Acquisition in the public market

        2,000

        $14.25




        May 18/12

        May 16/12

        Daniels, Raymond John

        Direct Ownership

        Common Shares

        10 - Acquisition in the public market

        2,000

        $14.50




        May 17/12

        May 16/12

        Roane, Glen Dawson

        Direct Ownership

        Common Shares

        10 - Acquisition in the public market

        10,000

        $14.85




        May 16/12

        May 15/12

        Martin, Douglas R.

        Direct Ownership

        Common Shares

        10 - Acquisition in the public market

        400

        $14.70




        May 15/12

        May 15/12

        Le Dain, Eric G.C.

        Direct Ownership

        Common Shares

        10 - Acquisition in the public market

        2,000

        $14.89




        May 15/12

        May 15/12

        Roane, Glen Dawson

        Indirect Ownership

        Common Shares

        10 - Acquisition in the public market

        20,000

        $15.20




        May 9/12

        May 7/12

        McLaughlin, Edward

        Direct Ownership

        Common Shares (Restricted Share Unit Plan ("RSU"))

        00 - Opening Balance-Initial SEDI Report







        May 9/12

        May 7/12

        McLaughlin, Edward

        Direct Ownership

        Common Shares (Performance Share Unit Plan ("PSU"))

        00 - Opening Balance-Initial SEDI Report







        May 9/12

        May 7/12

        McLaughlin, Edward

        Direct Ownership

        Options (Stock Option Plan)

        00 - Opening Balance-Initial SEDI Report

    • If you are going to get diluted anyway, at least you have the opportunity to sometimes to pick up diluted shares at a discount to market with a rights or subscription offer.

    • Where do you see all the insider buying going on. I can't find anything on that

 
ERF
10.18+0.25(+2.52%)Dec 19 4:07 PMEST

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