I can't figure it out either but it does not surprise me that an accountant would know but not be able to explain it in layman's terms. In regards the dividend, they have been keeping it at this rate for many years. I just reinvested in new shares with the dividends and I suspect my average cost per share is about 4-5 dollars if I pretended the dividends were like stock splits. I agree that this is a twisted view of investing but it satisfies my view of the system.
Part is from the dividends, part is from capital gains and some is from paid in capital. There have been times when the paid in capital made up about half the distribution but recently the gains in the market have allowed this closed end fund to pay the distribution out of capital gains and dividends. That use of paid in capital has been a sore point with some and one must wonder what the price of the shares would be if the distribution were 5-6% instead of 9-10% each year. I just collect the money and watch the stock stay relatively flat although I have made some recent purchases around 9.90.
Did the contract say take or pay for a set amount of gas? If so, then the gas will be sold at increasing prices over the years based on the Australian CPI. I do not see how Santos et al could undercut a price set by the government and based on Australian inflation. Would there not be an issue with "dumping" gas below market prices if they were to try that?
Excellent reply doc. I wanted to scream when they started going on and on about Space X stock but refrained from telling them there was no stock market for Space X. I would be very happy if Orbital gets to 30 but I honestly expect at least a 10-15% correction to this market not too far in the future.
Just saw it pop over 24. That is a good sign and I hope it can hold. I understand what you are saying about Cramer and you are right about him being part analyst and part entertainer. He just wears on my nerves a bit.
The real fireworks in a game will be Mike Leach's "Air Raid" offense at WSU vs the potent running of Steve Sarkisian's UW offense on Friday at 12:30. WSU is probably the most improved team in the PAC 12 and UW finally began to show what they are capable of in ringing up 69 points against Oregon State last week. If you get a chance to watch that one guys and will not miss others you want to see then tune in.
Oh, and have a great TG Day with family and friends and try to not shop until at least Saturday.
Cramer reminds me too much of a sleazy used car salesman and I have seen him support stock of more than one company on his show after a rather large gain in share price only to watch those same stocks flatline or drop in value. And no, I cannot give specific names but even he has admitted making mistakes after praising some companies and managements. And for that I applaud him. All the pounding of buzzers and bells going off seem too much like a carnival sideshow. But, I know he is right sometimes and I hope this is one of them.
The gas prices will be set by the government so that may not be an issue as much as the volume of gas that Magellan may be able to sell which is quite likely to be less absent any other outlet for their production. I certainly hope Magellan did not go into this deal in the hope that Gove would be a guarantee.
He would not give the company the time of day for the past two years but now, after a 50+% jumpt in price, he likes it. I wonder if I should view his change of mind as a kiss of death.
What has changed in the PDS story that would account for this? Do earnings going forward appear that weak? Is the whole drilling sector suffering? Thoughts from other holders of PDS are welcome because, with the overall market hitting many all time highs, PDS is not participating.
Wichita, you seem to have much more confidence that this whole issue will come good for Sonde than do deeprig or dvowner. Am I reading this wrong or, if not, can you let us know the basis for your optimism?
Of course, the puppets will point out that there were sellers into that rise and buyers as it went down do it evens out I suppose but the bias was towards a gain for the day.
A large majority of the shares traded today were on the purchase side heading up to 1.13. About 20% of the shares were later in the day drawing the price back to about 1.08.