amazing that after all the financial turmoil and subsequent damage to the understandably credit extended shipping companies, that those 'few' last men standing companies that paid-out dividends throughout the meltdown and continue to do so, albeit in some cases a reduced amount vs. those companies that completely 'eliminated' their dividends that these 'few companies should be discredited rather than applauded???....the world economy will continue to improve and i know that those companies that along the way completely 'eliminated' their dividends will never return similar pre-crisis pay-out amounts...i believe the 'few' of the last men standing companies deserve credit for their efforts and not criticism.
Don't kid yourself, it's going to have the same price drop because they keep reporting lower earnings and the consensus is a likely dividend cut. Nobody is dumb enough to go long on CPLP right now at 10+ dollars. Even if you wanted to go long you'd know you could still get in at 7$ in few weeks.
Despite the pontifications of concourse he is going to make good money on his short positions when everybody bails in a few days. CPLP is paying out more than they are earning that is clear. 2 things can happen. They maintain dividend and the shares crash again like always, or cut the dividend and the shares plummet severely. Even longs are leery of holding into what will be at best a 30% sell off and chance holding into a dividend cut that could wipe half the shares value away in a matter of hours. I don't currently own shares at the moment, but if I did, I'd be looking to take profits off the table before the storm hits.
Another week has gone by, and neither one of you benchwarming geniuses has answered the actual question.
What percent of the .41 quarterly div that CPLP is so proud of, is actually ROI, as opposed to ROC?
You want to talk 4th downs and long, or going for a fake punt, pass play with Bellichick or what? Are you guys benched with injurys or someone put Ben-gay in your jockstrap again? Huddle up!
zero is the answer. also roc is being mis-used here. roc is an abbreviation for return on capital, not return of capital. cplp can afford to keep paying its divy unchanged. we are all in the dark as to whether they will. the board will have to decide, but i'm sure they won't take any guidance from anyone posting on yahoo.
Robert. Im going to ask you point blank, and lets get this over with. What is the amount, out of the .41 or $1.64 dividend 'run rate' (that is so touted by UBS), that could be considered as ROI and not ROC?
Lets see if you can answer that question.
Perhaps, to be fair, I should direct you to this post that was a response to 'clem', that you should read, before you answer.
You are confusing ROI and ROC with mutual funds. When you buy shares of a mutual fund, the money goes directly to the fund manager and they can give a Return of Capital. But when you buy stock, the money goes to the previous owner, not the company. Stocks can't return capital. Only when they issue new shares does the money go directly to company such as an IPO. A company would never issue new shares if they only intended to return the capital.