Mr. Friedriksen owns 23%+ of Seadrill shares, If he takes shares instead of cash, Seadrill saves 25% in cash flow. How many other investors are buying shares with their dividend? Under this scenario cash flow needs only $3 annually instead of $4 for the dividend.
The dividend cut from $1.12+ to $ .40 gives AT, who has 120,000,000 shares outstanding about
$50,000,00 to $90,000,000 extra cash for investing. This and the fact that AT can be bought
should get the stock above $8 in short time.
With 120,000,000 shares outstanding, cutting the dividend from $1.12+ to $.40 per year gives
AT somewhere between $ 50,000,000 to $80,000,000 extra cash to invest. If AT holds at $7.00
the yield is 5.7%. That is solid for investors. They cover that divvy easily with cash to spare.
With its merger with Progress, there wasn't enough shares in Duke's Treasury so they did a reverse split. The merger with Progress required $18 Billion in shares butmost of Duke's shares were already held by shareholders. If there were a billion shares outstanding and they did a 1 for 3 split then then added 666,6666,666 new to their treasury and at $65 a share you see it was more than enough to buy Progress.
On March 1 SDRL was $40.97. Today it is $34.35
down 16.16% and falling. Is this an adjustment
or something inherently wrong within Seadrill. Their future projections are great. What gives?
The reason is that there is more "junk" out there
that entails more risk to get higher yield. Better
high yield bonds are getting scare. Some funds buy
the riskier bonds but a good manager stays clear.
RNP distributes $ .30 per quarter or $1.20 per
year for a yld.of 8.32%. But this distribution
is comprised of $ .8144 of NII and $ .3856 of ROC.
The true dividend is $ .8144 or 5.65% yield. The
balance of $ .3866 or 2.68% is ROC ( return of
your invested capital. ) So, this part is not to
be included on your IRS dividend report as income.
The "Dividend" posted for UTF is $.36 per quarter
for an annualyld.of 8.41%. But the reality is
that the "claimed dividend" is comprised of NII
of $ .1934 or $ .7737 a year for a yld of 4.52%.
The balance is ROC of $ .1666 or $ .67 a year or
3.9% of NAV. They are giving you $ .67 per share
a year back of your own invested capital.
I believe that the outcome will be a heavily
de-valuated dollar with printing press the big
salvation. This is why we buy physical silver
NOW! How else can one hedge the future in a
Even though the USA is 15 trillion in debt, the
USA dollar is the stronger currency. As we learn
more and more about Asian woes, their currencies
will weaken. Printing presses will be printing
in USA and in Euros. Our GDP, even when we are not growing, is so much larger than any other country.The dollar may stay strong because other currencies are weaker not because our debts are any less significant but because the USA is the currency of last resort. Strong dollar= weak commodity prices of precious metals.
I called two Silver Suppliers today for 100 oz.
bullion bars i.e. (10) 10 oz. or (100) 1 oz. Each
told be I could buy at $340 for 10 oz. but the
delivery is out 2 to 2 1/2 weeks because of the
demand. There are computers and people trading shares that manipulates pricing. But these buyers
of "Silver in their hands" is real ownership and
I must add " demand."