Replies to post #4974 on Longwei Petroleum (fka LPIH)

[silverline]

Totally agree. The other upside of a token divi is that it might just be enough incentive for the warrants to convert, which then brings in another $25MM - how can this be bad?? When I list the pros and cons for a divi, vs the pros and cons for continued growth through acquisition, in the short term, there is way more upside in declaring a small dividend.
The warrant cash + the additional flexibility that a proper pps valuation will bring = far more future acquisition flexibility.

[stills999]

The more they re-invest in the business, the larger the *future* dividends. Its not about caring about shareholders ... it is about caring about the long-term more than the short-term.

[Scandle34]

I thought about that on my 2 hour commute this morning (it's an in-office day). Even for those companies "proven" not to be frauds, there is still the issue of gettimng money out of China. A dividend proves it can be done through the channels available to the company...

Dover Corp. has a dividend yield of 2.42% (quarterly or annual, I don't know, but assume yields are annual...).

So, a $0.25 per share annual dividend (or 6 cents quarterly) could be a real game changer. That would be 25% of forward GAAP EPS, so it wouldn't even prevent more acquisitions.