Redwood Group International (RDWD)

[The Rainmaker]

Dividends part II: Here's a good dividend post made by DonLeopoldo

Posted by: DonLeopoldo Date: Thursday, June 05, 2008 9:34:33 AM
In reply to: The Rainmaker who wrote msg# 9369 Post # of 9614
If only they spin-off 20% of ENHD to SIVC's Shareholders, and suppose we have 650 Million O/S, ...

SIVC owns 428,095 ENHD shares

20% is 85,619 shares to be spoon-off

that is more or less 13 shares of ENHD for every 100,000 SIVC shares held.

ENHD at ONLY $5,... that is $5x13= $65 dividend for every 100,000 SIVC shares held.

I'm sure that with $1 EPS, and PER of 13 to 25, ENHD will trade in the $13 to $25 range, LOL,... and that will mean:

Spin-Off of 13 ENHD shares for every 100,000 SIVC shares will be equivalent to $169 to $325 dividend.

Lets suppose someone buys SIVC shares right now, at $0.0070:

100,000 SIVC shares cost $700 at $0.0070 PPS.
With a spin-off of only 20% of SIVC's holdings in ENHD, the dividend (with ENHD @$5) will be equivalent to $65% or +9%.

But when ENHD begins trading at $13 to $25 in mid/term, ... the dividend will be like having received +24% to +46%.

Now, consider that you still own the SIVC shares after the dividend, and that there will be this kind of dividends coming once a quarter...

That means +96% to +184% PER YEAR, and still you keep the SIVC shares !


Is this a win x win situation or not ?


SIVC is trading at these levels because it is a pinkie and most people don't believe it until they see it.

And for this reason, as soon as we get ENHD trading and the dividend, and we get the 2nd merger done, people will begin to believe.

And within a few months, we will be in the OTC, and more believers will see it.


Now, this situation is if you bought at $0.0070 these days.

If you come from $0.0010 or less (like it is my case, LOL), then you do the math...

that is x7 times for me, LOL !

... +96% to +184% per year, x7 times = +672% to +1,288% per year, only because of the dividends, and I still keep my SIVC shares, LOL !!!!!

When I say we have a "V" REVERSAL PATTERN, ... I MEAN IT !!!

And a "V" REVERSAL PATTERN goes all the way up to $0.07-$0.10 in 2008. And then higher !



2008-The Rainmakers Moneymakers. stock symbol RAIN
http://investorshub.advfn.com/boards/board.asp?board_id=11575