I will not argue with your first statement. for the evidence is clear. Yes of course cash spent on capex cannot be used to pay a div but as it moves thru cashflow statement not P&L it does not affect retained earnings. So if AMRQ makes a $200m profit in the 18 months to dec 27 (it could spend $150m on building BA and still pay a div with spare cash and as it would then have retained earnings of $97m. I was only suggesting a nominal 1p per share to start with (so a cost of $6m)
Well, I am a moron then because I assumed the folding cash for asset capex would come out of actual profits in a rush over a couple of years maybe. However it is presented on paper, I thought the actual cash would diminish rapidly leaving less to distribute to shareholders.
Of course they will but you are confusing P&L and cashflow statement. capex is on the latter. so let us say between july 1 2026 and end 2027 PTP is $200m. $100m can go on capex on building BA mine. that capex is then depreciated over 15 years or whatever LOM is in 2028 onwards P&L but is not a hit on 2027 P&L so does not affect retained earnings
It makes you think. Pull all of my money out of the market and put it into cash with the best yields about 5% on savings accounts.My portfolio yields 8.7% despite having a few non dividend stocks, Kefi and Amrq.Though the saas apocalypse took some stocks down 60% and the FTSE drifted 4% in that time.Many of these stocks are now down only 10% YTD recovering most of the lost ground.Peak loses reached a possible $2 trillion.Could the AI crash be as contained?So sell my SMT and PCT and AAT?Could this run for another 12 months or could it all implode when DJT gets a strop after the mid terms. Could this be a bonfire night Explosion?I will seriously consider taking a profit on my 10 spacex and perhaps SMT.In the mean time, I will collect my dividends and instead of investing, I think I will treat all those I love this Christmas.Exact timings are hard to guess, though it never hurts to have a little/lot of cash on the sidelines, apart from when Labour start taxing it in your stocks and shares ISA next April.
Longspur, a connected broker, put out research this morning but had to withdraw it and plead for those of its clients, who had downloaded it to delete it!!!
It seems as though, like the pox, which is difficult to cure, once you’ve got on one of these lists, it’s very very hard to get off them. Unfortunately I’m on one such list which continues to generate barking mad calls on wine, whisky, artisanal gold, gemstones blah blah blah. The sales pitch is - you’re making 1% on your ISA (assumed to be cash), I can get you 15% pa on said asset, and what’s more it’s a tangible asset and these only go up.
