KEYP - Yes, absolutely. Personally, I think that dividend is just a front to get the price up for another offering.
Think about it. Why would you sell shares in a shady reverse merger at 4 times earnings (a rising 25% interest rate), and then turn around and pay the money back as a dividend? Do you need the money, or don't you?
Remember, the Chinext is up and running right now. Plenty of capital available in China. So why on earth did you come here to play the reverse merger game, KEYP?
And then they tell us that insiders aren't going to get paid their share of the dividend. WTF? That's not a good sign. They don't want to collect what is rightfully theirs. Any time I see that, I get cautious. I don't want to have companies giving me things for free b/c they love me or b/c they want to prove their worth to me or whatever. I want to get my fair share of the corporate profits, and I want management to get their fair share as well, and I want to understand very clearly how all the relevant parties are benefiting from the relationship. Otherwise, the joke is surely going to be on me and I don't want to be part of it.
Notice that KEYP and TPI--two RTO's that paid dividends--both had the same junk auditor, Patrizio and Zhou. Is paying a dividend a tactic recommended by Patrizio and Zhou? Maybe. TPI did an offering while they were paying a dividend. IMO the dividend was in place exactly for that reason--to help the offering price. Once the offering was done, they pulled the dividend.
Do you think KEYP is playing a different game here? I don't.
Call me a skeptic, but I think the dividend is likely to be a stunt. They are returning a small portion of the offering money they received in exchange for a higher share price and more credibility. It's an IR expense. Exactly what CCME was going to do ;-)
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