>> Based on current price of gold, TGC will owe US$321,667 per year in
>> dividend payments, of which only $32,1667 is paid to outside investors,
>> and $289,500 is paid to the other 3600 shares presumably held by TGC
>> founders and staff.
>
> What you're trying to say, I reckon, is that based on the current
> dividend, they will be paying out $321,667 over the next 12 months to
> the BDourse:TGC share holders (almost certainly more, if profit
What I'm trying to say, is that the in order to valuate these shares, you
must determine the probability they will be able to meet (or increase) their
dividend commitments.
Certainly whether their dividend commitments (based on current gold price,
dividend declaration and shares issued) is US$322k or US$32k has a
substantial impact on this probability.
Furthermore, you need to know their historical Net Income and current
Retained Earnings.
>> Are you simply saying you find it hard to believe TG makes that much
>> profit each year?
No, I find it hard to believe a company that makes such a profit would raise
an additional $447k and at the same time declare a dividend owing $322k.
If their dividend obligations are only $32k and not $322k, then I believe this
just fine.
Secondly, they have not demonstrated any purpose for raising such capital
other than as a publicity stunt.
> ... that when some normal, sensible company comes along
> and does something normal --- everyone is totally paranoid
Issuing securities without the nominal expected information disclosure is
not something normal, and trying to attempt basic due diligence is not
paranoid.
TGC states that "Only sophisticated investors would be interested in
shares". So where is an offering statement that has numbers any
sophisticated investor will require?
I am really quite enthusiastic about internet-domiciled companies and
open online equity markets, so it gets me to see it botched so badly.
Adam
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