divs, page-6

On 14/09/09, alfredo9 wrote:

"Have a think about what will happen when they eventually get around to paying a div. Yes, it sounds great that the companies have taken shares in lieu of debt, and Ray has a large amount in lieu of the debt owed to Mr Gloss. The assumption would be that the shares will appreciate in value and thereby give the creditors back what they have lost. But if you throw in a dividend, then they really clean up, and so do all the shareholders who stick with the company. A year down the track, I can see the issue of a dividend really lighting a fire under this stock."

In reply, on 14/09/09, tomwaters wrote:

"Dividend? Oh come on. They hardly have enough money to pay for the International Roast coffee. It'll be a loooong time before you see a divvy stream from these boys."

The share price was 5c when those messages were sent. Today it is 14.5c, with the 1c ff div on top - call it 16c of value.

My new prediction: in the next 1-2 years, the div will double and the share price will do the same.

I hope I am right.