I think the dividend policy was meant to help shareholders, because no scam company would pay a dividend. It didn't work; probably because it looked weak compared to the share issuance prior to becoming cash flow positive. We can't blame Solomon for that. At this point, he has no choice but to keep the dividend.
It most certainly turns into a positive when the company is cash flow positive.
If the company realizes its goals, positives collide. Institutions surely likes dividends, but they are not going to pile into an OTCBB company. Likewise, they would prefer an end to share issuance, and free cash flow.
All of these major changes -- uplisting/dual listing/cash flow positive/end of share issuance -- are scheduled for mid 2013.
By May 15th, 10 months from now, we will have seen 4 more quarterly reports; 2012 revenues approaching or meeting $145M with $.60 in FD income; NTA over $3.00; 2013 guidance of $250M - $300M, with eps north of $1.00/share; 100%+/- growth two years back and two years forward.
As long as these major milestones are tracking, long term holders will be fine, in the long term; in this case 10 months, imo.
A major factor through the Q2 conference call is a direct statement about why share issuance is needed, how it has succeeded, and how it will be implemented in 2013. Solomon addressed half of this in the last call.
If share issuance is complete for 2012, as appears the case, and if share issuance for 2013 is undertaken opportunistically -- meaning after dual listing -- and that is part of a clear statement, then I think we simply sail into the collision of positives, assuming operational and financial success even approaching guidance.
Q2 results and cc are about a month away. Given the still heavily seasonal revenue realization, could also seriously use a reiteration of guidance. I expect we will get a results press release like the last one, which did a great job outlining progress and plans.
The investor tour -- a week long -- follows Q2 results by just two weeks. Only makes sense that Solomon has positive announcements beforehand; possibly on hand, as well; otherwise, why subject himself to such concentrated scrutiny?
